The Third Party Administrator (TPA), proposed to be set up by the public insurers for health insurance, is likely to be a reality in next three months.
``The process is on and it may take three more months to be ready,’’ Mr G Srinivasan, Chairman and Managing Director, United Indian Insurance Company Ltd (UIICL) told newspersons here on Monday.
Mr Srinivasan was here to sign an agreement with State Bank of Hyderabad (SBH) to extend free personal accident insurance to the latter’s customers.
Four public sector general insurers - New India Assurance, Oriental Insurance, National Insurance and United India Insurance announced their plan to float their own TPA stating that the practices of private TPAs were resulting in losses in health insurance business.
``A common TPA for the State-run general insurance will lead to better negotiation of prices with hospitals, among others. The whole health insurance business will have a positive impact,’’ Mr Srinivasan said.
TARGET
On his company’s business growth, Mr Srinivasan said a `better’ business growth was expected due to improved conditions in the economy.
``Last year, our premium income was at Rs 6,400 crore which marked a 22 per cent growth over the year-ago period. We will do well this year and may clock Rs 8,000 crore in premium,’’ the CMD said.
BANCASSURANCE
On the recommendation of an IRDA panel that banks should be permitted to act as corporate agents for two sets of insurers in each segment, he said: ``Our personal view is that opening up of bancassurance channel is not advisable.’’
At present, banks are allowed to take up corporate agency of only one insurer in each segment of life, general and health.
``Bancassurance is a long-term relationship and there is no shortage of products. Opening up of sector may not help improving customer service as being thought,’’ he added.