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Motilal Oswal Predicts 31% Surge for Niva Bupa Stock Post-IRDAI Draft Paper

Why Insurance Matters
Medical insurance protects you from unpredictable and often extremely high medical expenses. With adequate coverage, hospitalisation costs no longer have to be a financial burden — you can get treated at the best hospitals without worrying about the bill. Health policies also come with an added advantage: they're eligible for tax benefits under Section 80D of the IT Act. Understanding these benefits is the first step before comparing the many options available in the market.

CNBC TV18•25-09-2026, 08:49

•Motilal Oswal maintains a "buy" rating on Niva Bupa Health Insurance with a target price of ₹100, projecting a 31% upside.
•Niva Bupa views the IRDAI distribution reforms as a net positive for the industry and company in the medium term, despite potential near-term growth impact.
•The IRDAI consultation paper proposes recalibrating insurance distribution economics, including rationalizing expenses of management (EoM) and tightening commission controls.
•Niva Bupa expects reforms to be positive for retail health, agency, bancassurance, and digital brokers, but potentially negative for credit-linked business.
•The company is confident in reaching 25% EoM in two years and 20% in five years, accelerating its path to a 98-99% combined ratio target.

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Key Questions Answered

Motilal Oswal has maintained a 'buy' recommendation on Niva Bupa Health Insurance Ltd. with a target price of ₹100 per share, which indicates an estimated potential upside of 31% following the IRDAI draft paper discussions.

The IRDAI consultation paper issued on Wednesday, September 23, proposed a broad recalibration of distribution economics, including rationalising expenses of management, tighter controls on commissions, and enhanced transparency for policyholders.

Niva Bupa views the reforms as a net positive for retail health and agency channels over the medium term, while group business is seen as neutral to marginally positive, though credit-linked business is expected to face negative volume impacts.