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The launch of the much-awaited common third party administrator (TPA) floated by four state-owned general insurers has once again been postponed.
The TPA, which is being set up with an investment of over Rs 200 crore by the four general insurers -- New India Assurance, United India Insurance, National Insurance and Oriental Insurance -- to look into health claims and handle claims received by these public general insurers is now likely to be launched only next month.
The TPA was earlier supposed to become operational in June. However, it was postponed first to July and now to September.
The four general insurers have 23.75 per cent stake each and GIC Re has five per cent.
"There are still a lot of works (that) need to be completed before the commercial launch. We expect to complete all these by September," New India Assurance chairman and managing director G Srinivasan, who is also the chairman of the General Insurance (public sector) Association (GIPSA) told PTI.
The common TPA is expected to streamline claim settlement process and reduce the claims ratio of public sector insurers who enjoy a market share of over 70 per cent in the health insurance space.
The move is intended to process claims in-house and is expected to prohibit large-scale leakages, reduce costs and boost profitability for these insurance companies, which pay a commission of around six per cent of premium to TPAs to settle claims.
The job of TPA would include member enrollment, call centres, customer service and grievance management, pre-authorisation and claims processing.
Further, it would also be involved in providing network empanelment, verification and investigation, pre-policy health check-up and facilitate customer awareness and wellness programmes.
The TPA has already received licence from the Insurance Regulatory and Development Authority.
Senior officials involved in its operations said the company is setting up software processes and is in the process of hiring around 100 employees.
"In the first year, the TPA is expected to do 15-20 per cent of the business from these four public sector general insurers. This will be scaled up, depending on how does the TPA take shape," an official said.
