India’s first third party insurance licensee exits businessFebruary 6th, 2009 - 8:57 pm ICT by IANS
Chennai, Feb 6 (IANS) The Hyderabad-based Dawn Services, the first third party administrator (TPA) to be licensed by the Indian insurance watchdog, has decided to exit the business. According to Insurance Regulatory Development Authority (IRDA), the TPA licence to Dawn Services has not been renewed upon request.
In an order dated Feb 6, IRDA said it has accepted the company’s submission - not having undertaken any business during 2002-2005, having no pending health claims, and the management’s decision not to renew the licence.
According to IRDA, Dawn Services has ceased to be a health insurance TPA with immediate effect.
A TPA is an organisation that processes insurance claims for a separate entity. This can be viewed as “outsourcing” the administration of the claims processing, since the TPA is performing a task traditionally handled by the company providing the insurance.