The investigation follows a complaint filed by Association of Third Party Administrators (ATPA) against the General Insurers (Public Sector) Association of India (GIPSA), public sector general insurance companies and the central government.
The CCI is mandated to keep a tab on unfair business practices in the marketplace across sectors.
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Minister of State for Finance Jayant Sinha said in a written reply to the Rajya Sabha that the CCI, in an order dated April 15, 2014, has directed its director general (DG) to carry out an investigation and submit a report in the case.
Sinha was responding to queries on whether cases of alleged unfair business practices with regard to third party administrators by public sector general insurance companies have come to the notice of the government.
The CCI refers a case to its investigation arm, DG, if it finds that prima-facie there is violation of competition norms.
It has been alleged that the four companies dealing in health insurance business were not allowing third party administrators or TPAs to work independently.
Back in 2011, the fair trade regulator had dismissed an ATPA complaint against General Insurers (Public Sector) Association of India.