GIC to set up new TPA soon

Grappled with charges of poor service, delays and disputes with customers, a joint venture third party administrator (TPA) company, made up of four public sector general insurance companies and the national re-insurer GIC, is all set to be incorporated early next month. The new TPA will be to set benchmarks in the delivery of health insurance claims service to customers.

The new company will have a share capital of Rs 200 crore, which will be contributed by the four companies. The four public sector general insurance companies – New India Assurance, United India Insurance, National Insurance and Oriental Insurance – will pick up about 95 per cent of the equity between them, while GIC will take 5 per cent.

“The process of appointing a consultant to guide the new venture is currently on. Regulatory clearance from the IRDA  will be sought after incorporation of the company,” said a senior official of the company. The premiums collected on this account were about Rs 15,000 crore last fiscal.