SC salve to save Balco
New Delhi: In what could be seen as a ray of hope for the settlement of the protracted Balco face-off, a three judge bench of the Supreme Court, comprising B N Kirpal, U C Banerjee and Brijesh Kumar has come up with an interim measure, asking striking employees if they would resume work on being paid two months’ salary in advance.

This is part of the offer make by Sterlite Industries, which acquired 51 per cent share in Balco from the government for Rs 551 crores and has been facing worker and state government opposition, ever since.

The payment is to be adjusted when the court gives its final directions.

The decision on this would have to be given by the workers by May 8.
The government is optimistic that the Court’s offer would lead to a settlement between unions and the new management.

In a related issue, on the question of the legality of allocating land to units floated on tribal land, the Supreme Court has sought information from the state government on other companies operating on tribal land. It was felt that if tribal land could not be transferred to non-tribals, other projects besides Balco would also be affected.
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Restricted role for third party insurance administrators
New Delhi: The new draft regulations announced by the Insurance Regulatory and Development Authority (IRDA) restricts the role of third party administrators as intermediates in health care.

Under the new draft regulations, TPAs can assist insurers in the health insurance business, but cannot enter into marketing on their own, or operate as insurance intermediaries or agents.

What is intriguing is that both the approach papers the IRDA had brought out earlier had seen a major role for TPA in managed health care, estimated to be of the order of Rs 3000 crores.
IRDA earlier had defined a TPA as "an insurance intermediary licensed by the Authority, who either directly or indirectly, solicits or effects coverage of, underwrite, collect, charge premium from an insured, or adjust or settle claims in connection with health insurance, except as an agent or broker or an insurer". The new role envisaged is at total variance with the earlier ones.

The IRDA has also stipulated a minimum equity capital of Rs 1 crore and an application fee of Rs 20,000 for a three-year licence for a TPA. The type of services that a TPA can render to the insurer would need to be vetted by the IRDA, though a TPA can enter into agreements with more than one insurer.

There are about 10 TPAs in the country today catering to corporate clients seeking managed-care for their employees. International players like Munich Re and Zurich Re have entered into joint ventures with small, local outfits in the hope of expanding their operations as and when the regulations permit. A few new private players had also lined up prospective alliances with TPAs, awaiting word from IRDA. All these plans may now need to be changed.
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