Bajaj Allianz, Care Health cashless services suspension: Insurance body says AHPI’s action lacks clarity

The General Insurance Council (GIC) has issued a statement responding to the Association of Healthcare Providers-India (AHPI) decision to suspend cashless hospitalisation services for Bajaj Allianz General Insurance and Care Health Insurance policyholders, effective September 1, 2025.

GIC described the AHPI action as “arbitrary, lacking clarity or actionable details,” stating that it has created confusion and concerns among citizens and affected trust in the health insurance ecosystem.

The council highlighted that disruption in cashless services directly affects families through higher upfront treatment costs and out-of-pocket expenses.

It also noted that such actions could impact patients in critical medical conditions requiring immediate hospitalisation.

GIC urged AHPI to withdraw its advice to member hospitals and engage constructively with insurance companies to continue cashless services for all policyholders.

The matter originates from AHPI’s August 22 announcement advising member hospitals in North India to suspend cashless treatment facilities for Bajaj Allianz and Care Health Insurance policyholders.

AHPI cited concerns over outdated reimbursement rates, delayed payments, unilateral deductions, and lengthy pre-authorisation and discharge approval processes. It also noted that rising medical inflation, including higher input costs, medicines, and consumables, has made operating under existing terms challenging.

Bajaj Allianz General Insurance stated that it had always aimed to provide policyholders with quality services and fair rates. The insurer emphasised its commitment to resolving the matter amicably through dialogue with AHPI representatives.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}