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MNCs queue up for insurance support

business Updated: Sep 28, 2010 21:09 IST
Mahua Venkatesh
Mahua Venkatesh
Hindustan Times
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Foreign entities have shown a keen interest in getting into India’s growing health insurance business.

Two dozen companies have so far submitted bids to partner an Indian firm for the proposed Third-Party Administrator to be set up by the four public sector general insurance companies.

A “majority” of these 24 companies are overseas investors, a source in General Insurers Public Sector Association of India (Gipsa) said.

Gipsa is the apex body representing four public sector general insurance firms — National Insurance Company, New India Assurance, Oriental Insurance and United India Insurance.

These four companies together manage about R6,000 crore of health insurance business and had invited proposals from companies to form a joint venture for the yet-to-be-floated TPA.

Consulting firm KPMG had given a report on the feasibility of setting up a common TPA by the four companies a year ago.

The company, which will own 26 per cent of the proposed JV, must have handled at least 500,000 health insurance claims over the last three years and its parent should have a net worth of R250 crore.

“We are evaluating the bids. The process is expected to take about two weeks,” said A.K.Singhal, CEO, GIPSA.