प्रेस विज्ञप्ति / Press Release

Insurance Regulatory and Development Authority of India Press Release - 21st August 2026 Orders in the matters of Edelweiss Life Insurance Co. Limited and Pramerica Life Insurance Limited for non-compliance with Expenses of Management limits The Insurance Regulatory and Development Authority of India (IRDAI) passed Orders against Edelweiss Life Insurance Co. Limited and Pramerica Life Insurance Limited for exceeding the permissible Expenses of Management (EoM) limits prescribed under the IRDAI (Expenses of Management, including Commission, of Insurers) Regulations, 2024, following off-site monitoring, examination of the insurer’s submissions and subsequent enforcement proceedings. IRDAI lays down strict expense limits for insurers to ensure prudential cost norms are followed. The expense of management includes both operational expenses and distribution costs. Insurers are expected to operate within those limits and to ensure the expenses are managed prudently so that the benefits of operational efficiencies are ultimately passed on to policyholders. These limits help insurers meet the reasonable expectations of policyholders regarding fair pricing, quality of service and long-term policy benefits. The insurers were warned for their failure to remain within the prescribed EoM limits and directed not to open any new place of business for a period of six months from the date of the Order, under Regulation 22(1)(b) and (c) of the EoM Regulations, 2024. The insurers have also been directed to place the Order before their respective Boards in the upcoming Board meetings and submit a copy of the minutes of the discussion to IRDAI within the stipulated period. The detailed Orders are available at IRDAI – Warnings and Penalties IRDAI remains committed to ensuring that insurers operate within the regulatory guardrails governing their expenses, thereby promoting sound financial management, transparency and accountability across the insurance sector. The Authority will continue to take appropriate supervisory and enforcement action wherever regulatory non-compliance is observed.