Insurers slam AHPI’s move to suspend cashless services, say citizens’ interests at risk
On August 22, AHPI announced that its member hospitals would stop providing cashless services to customers of the two insurers.
LOCAL
The General Insurance Council has strongly opposed the Association of Healthcare Providers (India) [AHPI]’s decision to suspend cashless hospitalisation services for policyholders of Bajaj Allianz General Insurance and Care Health Insurance from September 1, 2025. Calling the announcement “arbitrary” and “unilateral,” the council said the move creates confusion among citizens and undermines trust in India’s health insurance system.
On August 22, AHPI announced that its member hospitals would stop providing cashless services to customers of the two insurers. However, the General Insurance Council said the statement lacked clarity, offered no actionable details, and could leave patients and families facing unnecessary hardship.
The council noted that health insurance in India has been steadily improving access to quality healthcare. Industry-led reforms like Cashless Everywhere and the National Health Claims Exchange (NHCX) were designed to ensure patients can receive treatment at any hospital without the burden of arranging money upfront. According to the council, insurers paid out claims worth more than ₹87,000 crore in 2023–24, proving their commitment to policyholders across the country.
Industry leaders stressed that any disruption in cashless services could harm citizens directly. Patients may be forced to pay large sums before admission, pushing families into financial stress. In emergency cases, this could even put lives at risk. “No patient should ever be denied life-saving treatment just because cashless access has been suspended,” the council said.
The insurance industry also expressed unity in standing behind Bajaj Allianz and Care Health, pointing out that unfairly targeting any one insurer affects the interests of crores of policyholders who depend on health insurance for financial protection. “Our solidarity is with the people of India. Patients and families must never be pushed into uncertainty or hardship due to such unilateral actions,” the council added.
The General Insurance Council has urged AHPI to withdraw its directive and return to constructive dialogue with insurers. It appealed to hospitals to continue cashless services for all policyholders, saying that the healthcare and insurance sectors must work together to protect lives and ensure affordable, reliable care.