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The Association of Healthcare Providers India (AHPI) today, August 26 has directed all hospitals to suspend cashless hospitalisation services for Bajaj Allianz General Insurance and CARE Health Insurance, Zee Business reported.
General Insurance Council (GIC) strongly opposes the decision and said interests of citizens most important.
"Disruption of cashless service puts a huge financial burden and risk on patients," GIC added.
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In 2023-24, insurers settled claims worth over Rs 87,000 crore.
According to Zee Business sources, GIC urged AHPI to withdraw the decision immediately and continue cashless for all policyholders. According to GIC, the entire healthcare ecosystem must work together to ensure health security and help patients.
Meanwhile, on August 28, 2025, the AHPI will meet the executives from Bajaj Allianz General Insurance Company to address the suspension of cashless treatment services.
The meeting will include AHPI’s core committee members and senior representatives from Bajaj Allianz, following a dispute over reimbursement rates for hospitals.
Also Read: Not a single case of cashless denial: Bajaj Allianz after hospitals flag outdated rates
Reasons for cashless services suspension
“Medical inflation in India remains in the 7-8 per cent range every year, driven by rising staff costs, medicines, consumables, utilities, and overheads. While hospitals strive to enhance efficiency, it is not viable to operate at outdated reimbursement rates, much less lower ones. Continuing under such terms risks compromising patient care, which AHPI and its members cannot allow," said Dr Girdhar Gyani, director general, AHPI
According to AHPI, Bajaj Allianz has long resisted their call for tariff reductions as well as their suggestion to review tariff rates every two years to maintain them in line with medical inflation. In addition, member hospitals have accused Bajaj Allianz General Insurance of causing delays in claim settlement, as reported by AHPI.
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