It has been observed of late by the Authority that the offices of various insurance companies and licenced Third Party Administrators - Health Services are entering into agreements at the insistence of their clients for the sake of business considerations allowing TPA's to charge separate fees in addition to insurance premium.

These TPA's although licenced by the Authority perforce have to enter into such agreements to ensure the survival of their operations in view of the reluctance by insurance companies to empanel and utilize them.

It is hereby clarified that in the case of all such agreements which are out of the scope of IRDA (Third party Administrators - Health Services) Regulations, 2001 adequate precautions must be taken by informing the customer clearly of this fact.

It is therefore advised that all such agreements, where customer seeks separate services outside the ambit of the insurance contract, the scope of such services need to be outlined and a specific mention made that since it is out of the scope of the IRDA's regulations, the customer shall be solely responsible in case of any deficiency of service.

(N.Rangachary)
Chairman.