Insurance companies in the health sector have come together to form a Health Insurance Council to standardize practices across companies, a move that would help the policy holders to get better service and for clearing all the hurdles of growth.
Along with representatives from insurance companies, the proposed body will also have representatives from third-party administrators (TPAs) – the entities which handle claim settlement work – and from hospitals.
Differences between the three major players in the health insurance business had hindered the growth in this segment, with penetration levels remaining low as much as 14% as of end-December last year.
The body is to be headed by the secretary general of life and general insurance sectors alternately for a period of two years.