Niva Bupa Health Insurance Company Limited has disclosed receiving a significant income tax demand notice from Mumbai tax authorities, marking a notable regulatory development for the health insurance provider.

Income Tax Demand Details

The company received an Order cum Notice of Demand under Section 156 read with Section 143(3) of the Income Tax Act, 1961, from the Office of the Assistant Commissioner of Income Tax, Central Circle 5(3), Mumbai, on March 14, 2026. The demand pertains to Assessment Year 2023-24 and involves substantial financial implications.

Primary Reasons for Tax Demand

The Assessing Officer made additions to the company's total taxable income through specific adjustments that primarily focus on two key areas:

• Marketing and Advertisement Expenses: Disallowance of certain marketing and advertisement expenses deemed inadmissible under Section 37(1) of the Income Tax Act
• Insurance Provisions: Disallowance of provisions for claims Incurred But Not Reported (IBNR) and claims Incurred But Not Enough Reported (IBNER)

The company has noted that these disallowances primarily relate to industry-wide issues, suggesting similar challenges may affect other health insurance providers.

Company's Response and Next Steps

Niva Bupa Health Insurance has outlined its planned course of action in response to the tax demand. The company emphasized that the order is appealable and confirmed it will exercise its right to appeal before the Appellate Authorities. Additionally, the company has committed to making appropriate disclosures in its financial statements as required by regulatory standards.

Regulatory Compliance

The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to transparency with stakeholders. The communication was formally submitted to both the National Stock Exchange of India Limited and BSE Limited, ensuring comprehensive market notification of this material development.

Niva Bupa Health Insurance Company Limited has completed the allotment of equity shares under its Employee Stock Option Plan, marking another milestone in its employee compensation strategy. The health insurance company informed the stock exchanges about this corporate action through an official communication dated March 05, 2026.

Share Allotment Details

The company has allotted a total of 2,58,200 equity shares to eligible employees under the Niva Bupa Employee Stock Option Plan 2020. The allotment took place on March 05, 2026, following the exercise of stock options by qualified grantees within the organization.

Regulatory Compliance

The allotment was conducted in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has duly informed both the National Stock Exchange of India Limited and BSE Limited about this corporate action through proper regulatory channels.

Share Rights and Privileges

The newly allotted equity shares will rank pari-passu with the existing equity shares of the company. This means that the new shareholders will enjoy equal rights and privileges as existing equity shareholders, including voting rights, dividend entitlements, and other corporate benefits as per the company's articles of association.

Company Information

Niva Bupa Health Insurance Company Limited operates under IRDAI Registration No. 145 and holds CIN: L66000DL2008PLC182918. The company maintains its registered office at C-98, First Floor, Lajpat Nagar, Part 1, New Delhi-110024, while its corporate office is located at 3rd Floor, Capital Cyber scape, Golf Course Extension Road, Sector-59, Gurugram-122101, Haryana.