Insurance regulator IRDAI has directed Edelweiss Life Insurance and Pramerica Life Insurance, in separate orders on August 20, not to open new place of business for six months for non-compliance with Expenses of Management (EoM) limits in 2024-25.
“The [two life] insurers were warned for their failure to remain within the prescribed EoM limits and directed not to open any new place of business…”, the Insurance Regulatory and Development Authority of India (IRDAI) said on Friday. The direction follows off-site monitoring, examination of the submissions, by the two insurers, and subsequent enforcement proceedings.
On August 19, it had barred Niva Bupa Health Insurance and Acko General Insurance from opening new branches for six months after finding both insurers exceeded the permissible EoM limits for 2024-25.
In a release, on the latest action, IRDAI said it has laid down strict expense limits for insurers. They are expected to operate within the EoM, which includes operational expenses and distribution costs, to ensure the expenses are managed prudently and the benefits of operational efficiencies are ultimately passed on to policyholders.
During 2024-25, Pramerica Life Insurance incurred expenses of ₹ 747.73 crore as against the allowable expenses under non-participating (including linked policies) segment of ₹609.94 crore, thus resulting in excess expenditure of ₹137.79 crore.
Against the allowable expenses under non-participating (including linked policies) segment of ₹494.09 crore, Edelweiss Life Insurance incurred expenses of ₹558.73 crore. Under participating segment, against the allowable expenses of ₹239.50 crore, the insurer incurred actual expenses of ₹264.81 crore resulting in total excess expenditure of ₹89.95 crore, IRDAI said.
Published – August 21, 2026 09:29 pm IST
