In a bid to safeguard its interest, the Association of Third Party Administrators (ATPAs) has written to the Insurance Regulatory and Development Authority (IRDA) asking whether TPAs can hold two licences — one that they hold as of now and another in case they partner in the General Insurers’ (Public Sector) Association of India (GIPSA) TPA joint venture.
The ATPA has also asked whether an existing TPA would be entitled to be a shareholding partner in the proposed venture by the government-owned general insurers.
"If an existing IRDA-licensed TPA from India fulfilling three conditions were to join as the 26 per cent partner in this GIPSA TPA venture, would that be acceptable to the authority? This is keeping in mind that the JV company would also be seeking a TPA licence," said the ATPA letter written to the IRDA on Monday, a copy of which is with Hindustan Times.
After the recent conflict over inflated claims on medical insurance, GIPSA member companies — National Insurance Company, New India Assurance, Oriental Insurance and United India Insurance — have invited Expression of Interest (EoI) from companies to form a joint venture for their TPAs where they will offer 26 per cent stake in the JV and the EOI applicant or its parent should have a net worth of R250 crore.
The 27 TPAs feel this does not offer them a level ground to operate. "A net-worth of R250 crore is too high and favours foreign participants," said a senior TPA official.