New Delhi, Sept. 10 -- A group of six to seven life insurers is seeking more room from India's insurance regulator to exceed expense limits, arguing that the current rules can penalize smaller companies for spending on the distribution and infrastructure needed to grow.

The insurers have approached the Insurance Regulatory and Development Authority of India (Irdai) seeking a relaxation of up to Rs.100 crore for breaches of expenses of management (EoM) limits, according to people familiar with the matter.

They are also seeking a broader overhaul of the framework, including recognition of a fixed base cost for running an insurer, with spending above that level linked to premiums written, they said.

The push comes after Irdai in August ba...