Insurers should disclose info on TPA

Third party administrator (TPA), an independent body which settles health insurance claims, should disclose about the holdings by insurer and re-insurer in it to their clients, said a report submitted to insurance regulator IRDA. “An insurer or re-insurer owns a stake in any TPA should clearly be disclosed to all clients of the TPA so that the clients have an informed decision in this matter,” according to a report of the committee for evaluation of performance of TPA. The committee also recommended that claims processing for health or life insurance companies should not be done by the same TPA which has done pre-insurance health check. It further said that insurers or the group which holds stake in the insurance company should be allowed to hold 26 pc stake in one TPA only and not in more than one TPA.

The committee also recommended to increase the paid-up capital to Rs two crore for the start-up TPA business.

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