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IRDAI penalises four insurers for Expense of Management breach

24 August 20261 min read
BANKING & FINANCEIRDAI penalises fourinsurers for Expenseof Managementbreach24 August 2026safalsetu.com

Why in the news

IRDAI showed strictness on insurer costs by restricting four companies that overshot their Expense of Management limits for 2024-25.

Key facts

  • Action: no new places of business for six months.
  • EoM sums up running costs and distribution costs, such as salaries, marketing and agent and broker commissions.
  • The cap is a percentage of premium.

Why cap EoM

  • Spending on running the firm is money not available for claims or cheaper premiums.

Exam angle

  • Regulator: IRDAI. Year of breach: 2024-25.
  • Likely question: what does EoM include?

Test yourself

1. What penalty did IRDAI impose on four insurers for breaching Expense of Management limits?

They were barred from opening new places of business for six months.

2. Which of these insurers was among those barred by IRDAI over EoM limits for 2024-25?

Niva Bupa Health Insurance was one of the four.

3. In insurance regulation, IRDAI caps Expense of Management as a percentage of what?

IRDAI caps EoM as a percentage of premium.

This topic is part of Daily Current Affairs 23 & 24 August 2026 (15 topics).

All topics of the dayDay quizAugust 2026

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