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    • Third Party Administrator Licence for Insurance TPAs

    December 6, 2025 - Jyoti

    The demand for Third Party Administrator Services in India is growing rapidly as insurers, alternative investment platforms, and financial service companies rely on expert backend support for claims, processing, administration, and regulatory compliance. Obtaining a Third Party Administrator Licence has therefore become essential for organizations looking to participate in this high-growth ecosystem.

    With the rise of digital insurance, alternative investment structures, and global outsourcing, TPAs are no longer limited to health insurance they now support Alternative Asset Services, fund administration, and end-to-end operational outsourcing. In this evolving landscape, partnering with a compliance advisory like Enterslice helps businesses streamline licensing, documentation, and regulatory approvals.

    What Is a Third Party Administrator Licence?

    A Third Party Administrator Licence is an authorization granted by the Insurance Regulatory and Development Authority of India (IRDAI) that allows an entity to provide specialized outsourced services to insurance companies and financial service providers. These services typically include:

    • Claims processing and settlement

    • Policy administration

    • Customer support and documentation

    • Data management & reporting

    • Compliance-driven support

    • Healthcare network management

    TPAs act as a bridge between insurers and policyholders, ensuring transparency, fast turnaround, and operational accuracy.

    Why Are Third Party Administrator Services in Demand?

    1. Rising Insurance Penetration

    India’s insurance market is expanding rapidly, increasing the need for specialized administration partners that can manage high-volume claims and customer workflows.

    2. Digital Transformation

    InsurTech, AI-driven underwriting, and online policy sales require backend partners capable of tech-enabled claim settlement and real-time reporting.

    3. Growth of Alternative Investment Ecosystems

    TPAs today also assist in Alternative Asset Services including fund administration, investor onboarding, compliance monitoring, and back-office operations for AIFs, hedge funds, and private equity platforms.

    4. Cost Efficiency for Insurers

    Outsourcing administrative work reduces operating costs and helps insurance companies focus on underwriting, product innovation, and risk management.

    Eligibility Requirements for a Third Party Administrator Licence

    To apply for a TPA licence under IRDAI, an entity must meet the following conditions:

    • Must be registered as a company under the Companies Act

    • Minimum paid-up capital requirement of INR 4 crores

    • At least one director must be a medical professional (MBBS)

    • Fulfilling Fit & Proper criteria

    • Robust IT infrastructure for data handling

    • Detailed business plan and operational capability

    • Infrastructure for customer servicing, storage, and record maintenance

    Step-by-Step Process to Obtain a Third Party Administrator Licence

    1. Incorporation of the Company
     Form a private or public company with the required capital.

    2. Prepare Documentation & Business Plan
     Includes IT system details, HR plan, medical personnel details, SOPs, and financial projections.

    3. Submit Application to IRDAI
     Application is filed along with Form TPA-1, supporting documents, and fees.

    4. IRDAI Review & Inspection
     IRDAI evaluates infrastructure, financial strength, compliance readiness, and management capabilities.

    5. Grant of Licence
     Once approved, the entity receives the Third Party Administrator Licence, allowing operations in claims and policy administration.

    6. Annual Compliance & Renewal
     TPAs must follow ongoing IRDAI compliance, reporting, and audits for licence renewal every three years.

    How Enterslice Helps You Obtain a Third Party Administrator Licence

    Enterslice is a leading regulatory and compliance advisory firm assisting businesses in the insurance, financial, and alternative investment sectors. With deep expertise in licensing and regulatory approvals, Enterslice offers end-to-end support for TPA setup, including:

    • Company incorporation and capital structuring

    • Preparing TPA licence documentation

    • Drafting business plans and operational SOPs

    • IRDAI application filing

    • IT and data compliance advisory

    • Post-licensing training, reporting, and audit support

    • Support for Alternative Asset Services and fund administration

    Whether you're launching a digital TPA, expanding operational capabilities, or planning to enter the insurance-tech ecosystem, Enterslice helps you build a fully compliant, future-ready model.

    Benefits of Third Party Administrator Services

    Modern TPAs offer a wide range of advantages to insurers and asset managers:

    • Faster claims settlement

    • 24×7 customer support

    • Automated data and policy management

    • Reduced operational errors

    • Improved compliance and regulatory reporting

    • Efficient support for AIFs through Alternative Asset Services

    • Scalability for large insurers and digital-first companies

    FAQs on Third Party Administrator Licence

    1. What is the validity of a Third Party Administrator Licence?

    A TPA licence issued by IRDAI is typically valid for three years and can be renewed upon meeting compliance requirements.

    2. Can TPAs provide services beyond health insurance?

    Yes. Modern TPAs also support Alternative Asset Services, fund administration, call center operations, and digital onboarding processes.

    3. Is medical expertise mandatory for obtaining a TPA licence?

    Yes. At least one director must be a registered medical practitioner (MBBS).

    4. How long does it take to get a TPA licence?

    The timeline varies, but on average it takes 2–4 months, depending on document readiness and IRDAI review.

    5. Why should I choose Enterslice for TPA licence support?

    Enterslice handles the entire compliance process from documentation to IRDAI filing ensuring a smooth and quick licence approval.

    Conclusion

    Securing a Third Party Administrator Licence opens the doors to a rapidly expanding insurance and financial services market. With digital transformation, InsurTech innovation, and the rise of Alternative Asset Services, TPAs play a crucial role in ensuring operational excellence and regulatory compliance.

    Partnering with Enterslice ensures a seamless, end-to-end process for licensing, documentation, compliance, and business setup empowering your organization to build a robust, future-ready TPA model.

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