What is the role of the Third Party Administrator (TPA)?

Modified on Thu, 14 Jul, 2022 at 8:57 AM

A third-party administrator is a link between the insurance company, healthcare provider (hospitals), and policyholders. A TPA can be a company, agency, or organization holding a license from Insurance Regulatory Development Authority (IRDA).


The most important role of a TPA is to ensure a hassle-free claim settlement process for the customers and verifies document for the insurance company. They actually manage and investigate the claim. They are present in the network of hospitals and come in direct contact with the insured as soon as they get admitted into the hospital. 

In the case of a cashless claim process, the bill is settled directly by the insurance company to the hospital through TPA support.


TPA provides 24X7 support to the customers. All the related services like issuance of E-Card and other support roles are played by the TPA.


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