The General Insurance Council (GIC), the representative body of non-life insurers, has urged the Association of Healthcare Providers India (AHPI) to withdraw its recent advisory directing hospitals in North India to halt cashless treatment for policyholders of Bajaj Allianz General Insurance and Care Health Insurance.
The council has appealed to AHPI to continue extending cashless services to all insured patients while addressing concerns with the insurers through constructive dialogue.
Last week, AHPI asked its more than 15,000 member hospitals including major chains like Max Healthcare and Medanta to suspend cashless facilities for Bajaj Allianz and Care Health policyholders from September 1, 2025.
Criticising the move, GIC said the advisory was “arbitrary” and “lacking in clarity,” warning that such unilateral action could erode public confidence in the health insurance ecosystem. “Any disruption in cashless services ultimately hurts citizens, as it forces families to make large upfront payments and places patients in critical conditions at risk,” the council said in a statement on Tuesday (Aug 26).
The council also voiced support for the insurers, stating they were being unfairly singled out. When one insurer is unfairly targeted, it becomes a serious issue affecting crores of citizens who rely on health insurance for protection and access to treatment, it added.
In response, AHPI rejected GIC’s criticism, clarifying that its decision was the result of repeated complaints from hospitals over delayed reimbursements, arbitrary deductions, and the absence of tariff revisions despite rising treatment costs.
The advisory is neither arbitrary nor vague, as alleged. Moreover, we are unsure of the council’s locus standi in this specific matter between hospitals and individual insurers, AHPI said.
The association noted that it had followed due process, issuing formal notices and holding detailed consultations with hospitals before announcing the advisory.
Meanwhile, a meeting between AHPI and Bajaj Allianz officials has been scheduled for Thursday to work toward a resolution. “Executives from Bajaj Allianz have already started discussions with AHPI and several member hospitals to address these concerns constructively. The General Insurance Council has also sought talks. We are hopeful of reaching a solution in the broader interest of patients and healthcare providers,” AHPI added.
