<ul><li>Insurtech company Go Digit received a show cause notice from the Insurance Regulatory and Development Authority of India (IRDAI) for exceeding the regulatory limit for expenses related to the insurance business.</li><li>IRDAI limits expenses of management (EoM) for general insurance at 30% of the gross premium written in the timeframe. For standalone health insurance companies, the limit is 35%.</li><li>Go Digit's total operating expenses in the September quarter of 2024 rose 13.8% to INR 2,136.05 Cr from INR 1,876.54 Cr in Q2 FY24. Its gross written premium (GWP) increased 14.2% to INR 2,368.57 Cr in Q2 FY25 from INR 2,073.84 Cr in the year-ago quarter.</li><li>This marks the second instance when the startup has come under the scrutiny of the insurance regulator. Prior to its IPO, IRDAI slapped a penalty of INR 1 Cr on Go Digit for non-intimation of change in conversion ratio of compulsorily convertible preference shares (CCPS) issued by its holding company Go Digit lnfoworks Services Private Limited (GDISPL) to FAL Corporation, one of the promoters.</li></ul>

Go Digit Gets Show Cause Notice From IRDAI For Exceeding Spending Limit

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