IRDA proposes to ban TPAs for government health insurance schemes

“The licensed TPAs cannot enter arrangements for servicing health schemes promoted, sponsored or approved by any non-insurance body during the subsistence of the TPA license granted by IRDA,” the regulator said

Insurance Regulatory and Development Authority (IRDA) is proposing to ban third party administrators (TPAs) from operating as intermediary for the government sponsored health insurance schemes.

"The licensed TPAs cannot enter into arrangements for servicing health schemes promoted, sponsored or approved by any non-insurance body including central, state, local governments, firms, corporates during the subsistence of the TPA license granted by the IRDA," the regulator said in a draft circular, on which it has invited comments.

The IRDA had in 2005 allowed TPA to act for government sponsored schemes, but since then there has been an exponential growth in the health insurance industry.

The gross written premium of health insurance in India has increased to about Rs11,145 crore at the end of 31 March 2011, from Rs1,535 crore in end-2005.

"Given the growth of the health insurance sector it is important that the systems in place for servicing the health insurance should be dynamic and effective in order to ensure the orderly growth of the health insurance business in India," the draft said. The circular said that with respect to existing contracts that any TPA is servicing with the government, such contracts would be continued till expiry of the period, without further renewal.

"All insurance companies are directed to ensure that the TPA with whom they seek to enter into an agreement to render 'Health Service' do not have any similar arrangement... for servicing parties other than insurance companies...," it said.

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Rubber Board launches group life insurance scheme for tappers

The minimum contribution for membership in the scheme is Rs300 per year

The Rubber Board has launched a group life insurance-cum-terminal benefit scheme for tappers working in the small holding sector.

The scheme, being implemented in collaboration with LIC, provides insurance cover for natural and accidental deaths, compensation for disabilities due to accidents and terminal benefits for the members.

In addition, members' children studying from Classes 9 to 12 will be eligible for an educational scholarship. Board chairperson Sheela Thomas, said membership is limited to tappers in the 18-59 age group.

However those without insurance cover could remit their contribution to the retirement scheme till age 65. The scheme offers Rs35,000 for death due to natural causes, Rs80,000 for accidental death, Rs37,500 for the loss of a limb due to accident and Rs75,000 for loss of two limbs.

The minimum contribution for membership in the scheme is Rs300 per year. Of this, Rs133 will be accounted as premium and Rs167 as contribution to the terminal benefit fund. The board's contribution has been fixed at Rs200, she said.

For tappers that have membership in tappers bank, the Rubber Producers' Societies concerned will remit Rs2,000 per year as their contribution, she added.

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Kotak Mahindra MF floats 370 days fixed maturity plan

Kotak Mahindra Mutual Fund new issue closes on 20th July

Kotak Mahindra Mutual Fund has launched Kotak FMP Series 54 (370 Days), a close-ended income scheme.

The investment objective of the scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. The scheme will invest in debt and money market securities, maturing on or before maturity of the scheme. The tenure of the scheme is 370 days days.

The new issue closes on 20th July. The minimum investment amount is Rs5,000.

CRISIL Short Term Bond Index is the benchmark index. Deepak Agarwal and Abhishek Bisen are fund managers.

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