This company which was incorporated on August 14, 2013, as per information available from Ministry of Corporate Affairs, recently held its first board meeting
The common in-house third party administrator (TPA) of the public general insurers has been formed and is named Health Insurance TPA of India. This company which was incorporated on August 14, 2013, as per information available from Ministry of Corporate Affairs, recently held its first board meeting.
Officials involved in this project said that the Health Insurance TPA of India will be operationalised by April 2014. This common TPA to process health claims has National Insurance Company, New India Assurance Company, National insurance Company, Oriental Insurance Company and General Insurance Corporation of India (GIC) as stakeholders. While the former four public general insurers have 23.75% stake, GIC has 5% stake.
This TPA will look into health claims and would handle majority of the claims received by the public general insurers. The common TPA has been proposed to prohibit large-scale leakages while settling insurance claims in the health segment. Further, it is intended to process claims of public general insurers in-house, rather than being handled by an external agency.
Industry players said that this common TPA is expected to speed up the claim-settlement process as well as reduce the claims ratio of insurance companies. This move is also expected to reduce costs for these insurance players, who pay a commission of approximately 6% of premiums to TPAs to settle claims.
Presently, most claims in the health segment are handled by external players, which increased the time taken to settle claims. PK Bhagat has been recently appointed as the additional director of the company in the company’s first meeting held on September 4, 2013. G Srinivasan, the chairman and managing director of New India Assurance is the chairman of the board of this company, which is based in New Delhi.
When the TPA comes into operation, the claims handling and processing from external agencies will gradually be transferred to the new entity. Health Insurance TPA of India has been formed with authorised capital of Rs 300 crore and paid-up capital of Rs 10 crore.
According to details sourced from company filings with the ministry of corporate affairs, the incorporation document of the company said that the parties shall at all times be committed to increase the Share Capital of the company at least upto Rs 200 crores (Minimum Commitment) in accordance with the Business Plan and if the Board of the Company determines that such additional capital is necessary for the operation of the Company.
“The Parties shall cause the increased capital to be contributed in proportion to the Shares they hold in the Share Capital of the Company at the relevant time,” said the incorporation document. Also, if further funding is required by the Company beyond the Minimum Commitment in accordance with the Business Plan then the Board may consider further capitalisation or any other alternate source of financing such as shareholders loans, external debt financing.
Though Life Insurance Corporation of India (LIC) was offered a proposal to be a stakeholder in this venture, the life insurer decided not be become a part of it.
The common in-house third party administrator (TPA) of the public general insurers has been formed and is named Health Insurance TPA of India. This company which was incorporated on August 14, 2013, as per information available from Ministry of Corporate Affairs, recently held its first board meeting.
Officials involved in this project said that the Health Insurance TPA of India will be operationalised by April 2014. This common TPA to process health claims has National Insurance Company, New India Assurance Company, National insurance Company, Oriental Insurance Company and General Insurance Corporation of India (GIC) as stakeholders. While the former four public general insurers have 23.75% stake, GIC has 5% stake.
This TPA will look into health claims and would handle majority of the claims received by the public general insurers. The common TPA has been proposed to prohibit large-scale leakages while settling insurance claims in the health segment. Further, it is intended to process claims of public general insurers in-house, rather than being handled by an external agency.
Industry players said that this common TPA is expected to speed up the claim-settlement process as well as reduce the claims ratio of insurance companies. This move is also expected to reduce costs for these insurance players, who pay a commission of approximately 6% of premiums to TPAs to settle claims.
Presently, most claims in the health segment are handled by external players, which increased the time taken to settle claims. PK Bhagat has been recently appointed as the additional director of the company in the company’s first meeting held on September 4, 2013. G Srinivasan, the chairman and managing director of New India Assurance is the chairman of the board of this company, which is based in New Delhi.
When the TPA comes into operation, the claims handling and processing from external agencies will gradually be transferred to the new entity. Health Insurance TPA of India has been formed with authorised capital of Rs 300 crore and paid-up capital of Rs 10 crore.
According to details sourced from company filings with the ministry of corporate affairs, the incorporation document of the company said that the parties shall at all times be committed to increase the Share Capital of the company at least upto Rs 200 crores (Minimum Commitment) in accordance with the Business Plan and if the Board of the Company determines that such additional capital is necessary for the operation of the Company.
“The Parties shall cause the increased capital to be contributed in proportion to the Shares they hold in the Share Capital of the Company at the relevant time,” said the incorporation document. Also, if further funding is required by the Company beyond the Minimum Commitment in accordance with the Business Plan then the Board may consider further capitalisation or any other alternate source of financing such as shareholders loans, external debt financing.
Though Life Insurance Corporation of India (LIC) was offered a proposal to be a stakeholder in this venture, the life insurer decided not be become a part of it.
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