India: PSU general insurers set up new TPA
Source: Asia Insurance Review | Sep 2015
The Health Insurance TPA of India Ltd, set up to manage the health claims of the four public sector general insurers, will begin operations in September.
The TPA was set up to prohibit large-scale leakages while settling insurance claims in the health segment and insurers expect the new body to speed up the claims settlement process and reduce the claims ratio of insurance firms. This move is also expected to reduce costs for insurers, who pay a commission to external TPAs to settle claims.
The four general insurance companies – National Insurance Company, New India Assurance Company, United Insurance Company, Oriental Insurance Company, has a 23.75% stake each in the company and GIC Re has a 5% stake.
The TPA has been formed with an authorised capital of INR300 crore (US$45.8 million) and paid-up capital of INR10 crore. Mr M Nagaraja Sarma has been appointed MD and CEO of the company.
The Health Insurance TPA of India will provide the services of call centres, customer service and grievance management, pre-authorisation, and claim processing. It would be involved in providing network empanelment, verification and investigation and pre-policy health check-ups.