Tata AIG Joins Star Health, Niva Bupa, Care Health in Suspending Cashless Facility at Max Hospitals
Tata AIG Insurance policyholders may face a crunch at Max Hospitals as the insurer joins Star Health, Niva Bupa, and Care Health in suspending cashless claim settlements for the major hospital chain.
While Care Health has only suspended these services for Max Hospitals in the Delhi-NCR region, Star Health, Niva Bupa, and Care Health have suspended claims for all 22 of their hospitals across the country.
Reasons Behind the Suspension
Reports state that Tata AIG‘s decision is based on a tariff dispute with Max Hospitals. A Max Healthcare spokesperson responded to Money Control’s queries and said, ‘Max Healthcare and Tata AIG General Insurance Company had negotiated, renewed, and signed a two-year tariff agreement effective from Jan. 16, 2025, until Jan. 15, 2027.’
The statement added that in July 2025, Tata AIG demanded further rate reductions after calling for an abrupt meeting, ‘They unilaterally proposed a downward revision of the agreed tariffs and threatened to suspend cashless services. When we did not accept it, cashless services at our hospitals were suspended effective Sept. 10, 2025.’
Impact on Indian Policyholders
The suspension of cashless facilities at Max Hospitals may cause inconvenience to Tata AIG policyholders who may need to seek medical attention at these hospitals. Policyholders are advised to check with their insurer for alternative arrangements and to plan accordingly.
Similar Disputes in the Past
Earlier in September, Star Health‘s cashless settlement facility also found itself suspended, but for broadly different reasons. On Sept. 12, the Association of Healthcare Providers – India (AHPI), said that it issued a formal communication to Star Health Insurance, warning the company of potential withdrawal of cashless services for its policyholders.
Persistent issues faced by member hospitals with the insurance provider include continued refusal to revise tariffs for several years in line with prevailing healthcare cost inflation, pressure to further reduce outdated tariffs, unjustified deductions from hospital bills and claim rejections post final approval, stated a release from AHPI.
What Indian Policyholders Can Do
Indian policyholders who are affected by the suspension of cashless facilities at Max Hospitals can take the following steps:
- Check with their insurer for alternative arrangements
- Plan ahead and seek medical attention at other network hospitals
- Keep track of the latest developments and updates from their insurer and Max Hospitals
It is essential for policyholders to stay informed and take necessary steps to ensure that they receive the medical attention they need without facing any financial difficulties.
Conclusion
The suspension of cashless facilities at Max Hospitals by Tata AIG and other insurers is a significant development that may impact Indian policyholders. It is crucial for policyholders to stay informed and take necessary steps to ensure that they receive the medical attention they need without facing any financial difficulties.
For more information on health insurance and cashless facilities, policyholders can visit our website and stay updated on the latest news and developments in the health insurance industry.