State insurers move to reassure third party administrators

State owned general insurers have allayed fears of private third party administrators (TPAs) that have charged the four government-owned nsurance companies of trying to monopolise the market by setting up their own TPA.

State owned general insurers have allayed fears of private third party administrators (TPAs) that have charged the four government-owned nsurance companies of trying to monopolise the market by setting up their own TPA.

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The General Insurance Public Sector Association (GIPSA) has said that even as the four government owned general insurance companies have decided to float their own TPA, the private TPAs will not be barred from providing their services.

“The private TPAs that have been in the market would not be barred from providing their services, they can continue to operate,” AK Singhal, chief executive, GIPSA, told HT. Singhal said that the proposed TPA, would be in place by June, 2011.

Earlier, the Association of Third Party Administrators (ATPA) had alleged that setting up of a TPA by the four state owned general insurance companies — National Insurance Company, New India Assurance, Oriental Insurance and United India Insurance— would boost monopoly and had taken the issue to the Competition Commission of India (CCI).

The CCI has already started its investigation on the issue and the commission has called members of ATPA to understand and analyse the case.