IRDAI caps management expenses for General & Health Insurance Businesses in India

  • Blog|FEMA & Banking|News|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 31 March, 2023

IRDAI; General & Health Insurance Businesses

Notification F. No. IRDAI/Reg/4/192/2023, Dated 26.03.2023

The IRDAI has notified the IRDAI (Expenses of Management of Insurers transacting General or Health Insurance business) Regulations, 2023 to provide flexibility to insurers in managing their expenses within overall limits. As per the new norms, no insurer carrying on General Insurance Business in India shall incur expenses of management exceeding 30% of gross premium written in India in a financial year and for Health Insurance Business, it shall not exceed 35% of gross premium.

Further, in addition to expenses of management limit as specified, insurers shall be allowed the following additional expenses:

(a) Head Office Expenses.

(b) Expenses incurred towards the rural sector, Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jan Arogya Yojana (PMJAY) and Pradhan Mantri Fasal Bima Yojana (PMFBY) business.

(c) Expenses incurred towards ‘Insurtech’ and ‘Insurance Awareness’.

Also, all insurers transacting General Insurance or Health Insurance business, at the end of each financial year, must prepare a Return of Expenses of Management as per the specified format. The Return must be signed by the Chief Executive Officer, the Chief Financial Officer, the Chief Compliance Officer and the Appointed Actuary of the Insurer. Various other conditions and compliances were also prescribed.

Click Here To Read The Full Notification

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied