4418
5 min read
The benefits of a health insurance policy are abundant, which is now seen apparently by many, thanks to the claims made amid this epidemic. In a time when the cost of treatment is increasing, health insurance plans make it easier for people to worry less about their expenses, but instead, be focused on their overall health and recovery. If you’re an insurance policyholder or looking to buy health insurance, you might have heard of the term “TPA” and would have wondered what it meant and what is TPA in insurance. This article will assist you in understanding the TPA’s definition and its role when it comes to the health insurance industry.
Priya Shenoy, aged 32 years, works for a start-up company as a designer. She got hospitalized for a medical condition and was advised immediate surgery. In the limited time available, she informed the third-party administrator (TPA) of her health insurance company about the planned hospitalization. Fortunately, the hospital in which Priya was supposed to undergo surgery was part of the TPA network, so it was quite easy for her to get cashless approval. In the next 2 days, she underwent surgery with the entire medical expenses being taken care of by the insurer. Because of the health insurance TPA, her admission to the hospital and cashless claims were approved very quickly without any huge requirement of paperwork.
The TPA full form is Third party administrator. According to the Insurance Regulatory and Development Authority of India (IRDAI), the third-party administrator can be defined as a business that is appointed to assist a health insurance firm in providing health insurance-related services, such as policy servicing, claims processing, and customer service to policyholders. They can be called as an intermediary for the insurance company and the policyholder, thus ensuring the process of settlement for claims is handled efficiently.
However, there’s also an internal claim department in some insurance companies, established by the insurer, under its wings, to process claims raised by policyholders. In these cases, there isn’t a TPA involved, and all needs that are related to the health insurance policy are dealt with by the insurance company directly.
As increasing numbers of people are brought into the health insurance fold, the task of managing everyone is a major challenge for insurance companies because it demands a lot of manpower. This is where the function of a TPA insurance is vital as a single point of communication for the policyholder who needs his/her concerns addressed. For the insurer, they can concentrate on introducing newer policies that benefit all people. The role of TPA in health insurance extends in many other areas as well, as explained below:
While the largest insurance companies have their own in-house claims division, even then sometimes they as well as the new-age insurers collaborate with TPAs to share the work. Here are the important reasons and benefits of choosing a TPA over internal department for settlement of claims.
If you’re interested in purchasing an insurance policy for you and your families health needs, we hope this article helped you to know what is a TPA in the insurance industry and how they facilitate claims processing. In the wake of covid19 and the resultant increase in claims, it would have been impossible for the health insurers to manage the claim settlements without the help of the TPA. Also without the right information reaping the best benefits of your insurance policy might not be possible.
PayBima’s experts can help better understand the benefits and features of insurance policies for an informed policy buying experience.
Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
AYUSH treatments have recently generated massive popularity as an emerging branch of medicine. Looking at the increasing demand for the treatment, it has become imperative.
The year 2024 started with some groundbreaking measures and initiatives in the health insurance sector to facilitate policyholders with better health coverage and benefits. One.
Our knee is an important joint in the entire musculoskeletal system. The support and strength of the knee are pivotal for fluid movement and locomotion..
Updated on Jan 30, 2024 Understanding how OPD and IPD are two different terms in medical science, their coverage in health insurance plans and the.
Updated on Jan 23, 2024 February 10 marks the National Deworming Day observed every year across India. Let us understand the importance of deworming and.
Insurance is an indispensable requirement. However, not everyone can afford individual medical insurance to stay covered against major uncertainties, especially after retirement. If that is.
Updated on Feb 22, 2024 World Cancer Day aims at educating people and spreading awareness about detecting cancer and its prevention and treatment. Let us.
Updated on Jan 23, 2024 Rare Disease Day is an occasion observed on the last day of February every year. This year February 28 marks.
Cancer is a disease that needs no introduction. We all know how deadly the disease is and how rapidly it is spreading across the world,.
Updated on Jan 30, 2024 What is Insurance Regulatory and Development Authority (IRDA)? - Know in Detail The Insurance Regulatory and Development Authority of India.
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue