IRDAI has cancelled the certificate of registration of E-Meditek insurance TPA and further directed that the company will no longer be allowed to do business as a Third Party Administrator (TPA). This is first of its kind incident wherein a TPA has been asked to stop operations because of several violations which the regulator found detrimental to the interests of policyholders and insurers.
The regulator has asked E-Meditek to continue servicing the existing health insurance policies based on the discretion and direction of the respective insurers for a period not exceeding three months from the date of the order (10th Jan 2019).
“There are specific sections in IRDAI (Health Insurance) Regulations, 2016 and IRDAI (Third Party Administrators – Health Services) Regulations, 2016 dealing with servicing of such policies or claims. The insurer has to ensure that it does not impact the customers including managing pending claims or cashless requests,” informs Parvathi Singh, Executive Vice President & Chief of Claims, Tata AIG General Insurance Company. Understandably, IRDAI has directed that going forward, no insurer shall entrust servicing of new policies or servicing of new lives under the existing group schemes / policies to E-Meditek TPA.