Third party administrator for public sector insurers becomes a reality A joint venture third party administrator company has been incorporated in the insurance public sector and is expected to get operational over the next 9-12 months. A third party administrator is an agent who facilitates speedy processing and settlement of claims, especially to enable cashless treatment at the time of hospitalisation. NAME DECIDED The promoters - general insurance companies and re-insurer GIC - have decided on a name for the entity, says G. Srinivasan, Chairman and Managing Director, New India Assurance. “It would not be fair on my part to reveal the nomenclature just yet,” he told Business Line here where he announced a major initiative aimed at insurance penetration in Kerala. New India Assurance has partnered with the State Government-promoted Akshaya e-service centres to sell general insurance policies through more than 2,000 Akshaya kiosks in the State. Srinivasan said the new third party administrator company will have a share capital of Rs 200 crore. New India Assurance will join United India Insurance, National Insurance and Oriental Insurance to share 95 per cent of the equity between them, while GIC will take five per cent. “We may not be able to migrate all existing business to the new company at one go. It needs some time to scale up. The present arrangement would be retained until such time,” Srinivasan said. He also said the general insurers are looking to introduce ‘long-term’ policies in motor insurance. The insurers would like to come out with a policy valid for three to five years. Pricing the policy has always been a tricky issue, Srinivasan admitted. MOTOR RENEWALS Renewals record in the country is getting worse in the two-wheeler category, where up to 70 per cent of the vehicle owners slip into default mode after the first year. A valid motor insurance policy is mandatory for all vehicles. Defaulters forfeit protection against natural and manmade calamities, damage to vehicles in transit by road, air, inland waterway or rail. #publicsectorinsurers #insurance #jointventure #thirdpartyadministratorcompany #incorporation
Posted on: Sat, 07 Sep 2013 14:01:41 +0000
Trending Topics
Recently Viewed Topics
© 2015