Tata AIG Suspends Cashless Facility at Max Hospitals: What Indian Policyholders Need to Know
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.
Background of the Suspension
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.
Reports state that Tata AIG’s decision is based on a tariff dispute with Max Hospitals. A Max Healthcare spokesperson responded to 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.”
Reasons Behind the Suspension
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.”
Similar Issues with Other Insurers
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to revise tariffs for several years in line with prevailing healthcare cost inflation, pressure to further reduce outdated tariffs, unjustified deductions from hospital bills and claim rejections post final approval, stated a release from AHPI.
Impact on Indian Policyholders
This decision follows repeated complaints from member hospitals regarding Star Health Insurance’s questionable practices, according to the release. Previously, the association had called for the withdrawal of cashless services of Bajaj Allianz General Insurance Company. The instructions were later withdrawn, following talks between the association and the company.
Indian policyholders are advised to check with their insurers for the latest updates on cashless facilities at Max Hospitals and other healthcare providers. It is essential to understand the terms and conditions of your health insurance policy and to be aware of any changes that may affect your coverage.
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For more information on health insurance in India, please visit our health insurance page. You can also read our article on how to file a health insurance claim for more guidance.