The in-house Third Party Administrators (TPAs) system would be operational in the next six months, according to G Srinivasan, Chairman and MD of United India Assurance.
Speaking on the sidelines of the Assocham Global Insurance Summit, Srinivasan said that all the four public general insurers, government owned General Insurance Corporation, and Life Insurance Corporation of India will hold stake in it. While the public general insurers will have equal stake in the TPA, others might hold a little lesser stake. "This is a proposal that has been designed to meet the needs of the public general insurance players.
Last week, A K Saxena, chairman and managing director of Oriental Insurance had said that that the public life insurers will slowly move into having their in-house TPAs.
The common TPA has been proposed to prohibit large-scale leakages while settling insurance claims in the health segment. According to industry players. it 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 per cent of premiums to TPAs to settle claims.
On the health front, Srinivasan added that they are looking at covering additional cities under the preferred provider network. This network covers those hospitals which have agreed to public sector general insurance companies' package rates. Under this network, cashless medical facilities are provided to such insurance holders.