Niva Bupa Health Insurance has been barred from opening any new places of business for six months by the Insurance Regulatory and Development Authority of India (IRDAI), after the insurer failed to comply with prescribed expense management limits for the 2024-25 financial year.
Niva Bupa disclosed the regulatory order in a filing to the stock exchanges. The company said it is evaluating the order and will take appropriate steps to safeguard the interests of its stakeholders.
The regulatory action relates to Niva Bupa’s non-compliance with the prescribed limits on expenses of management for the financial year 2024-25.
Under the order, the insurer cannot open any new places of business for six months.
Niva Bupa, however, said the issue relates to the 2024-25 financial year and that it has subsequently been compliant with the applicable regulations.
The company said it was in compliance with the IRDAI (Expenses of Management, including Commission of Insurers) Regulations, 2024 for the full 2025-26 financial year, which ended on March 31, 2026, as well as for the April-June quarter of 2026. It also said it is on track to remain compliant with the regulations for the ongoing financial year.
Niva Bupa said it is currently evaluating the order and will take appropriate steps.
The insurer also clarified that its compliance position has improved since the period for which the regulatory action was taken.
According to the company, it has complied with the expense management regulations during FY26 and the first quarter of the current financial year.
The order restricts the opening of new business locations for six months, but the available details do not indicate that Niva Bupa has been barred from continuing operations at its existing locations.
Niva Bupa shares had already ended the previous trading session lower, and the stock remained under pressure on Friday following the regulatory action.
At 10:23 am on Friday, August 21, Niva Bupa shares were trading at Rs 81.33 on the NSE, down 1.87% or Rs 1.55 from the previous close.
The stock had fallen 1.70% in the previous session, adding to the decline seen after the regulatory order was disclosed.
The latest move puts the insurer’s shares under pressure as investors assess the impact of the six-month restriction on opening new places of business.