Big Relief for Policyholders: Cashless Facility to Continue with These Insurers
New Delhi (The Uttam Hindu): A big relief news came on Friday for millions of policyholders of Bajaj Allianz and Care Health Insurance. The Association of Healthcare Providers of India (AHPI), an organization of hospitals, has decided to lift the ban on cashless services of these insurance companies. Now from September 1, 2025, the customers of these companies will continue to get the facility of cashless treatment in the network hospitals of North India as before.
The decision was taken following a successful meeting between senior officials of AHPI and Bajaj Allianz on Thursday, August 28, in which long-standing disputes between the two parties were resolved.
In a meeting between AHPI and Bajaj Allianz, it was decided that the insurance company will formally inform the hospitals of the steps taken to address the complaints by September 29, 2025. In return for this assurance, AHPI has directed all its member hospitals to resume cashless services with immediate effect.
AHPI also clarified that the services of Care Health Insurance were never discontinued, they were only asked for clarification on some issues, to which the company has responded. Therefore, their customers will continue to get the cashless facility without any interruption.
Why did this controversy arise?
This dispute between hospitals and insurance companies was mainly triggered by insurance companies like Bajaj Allianz not increasing treatment rates (package rates) for several years, causing huge financial losses to the hospitals. Apart from this, hospitals also complained that insurance companies were delaying in adding new hospitals to their network, causing inconvenience to patients. Another important reason for the dispute was that insurance companies were refusing to pay for modern and new treatment techniques like robotic surgery, and were also interfering with the treatment methods suggested by doctors, raising questions on the quality of medical services.
The companies gave confidence
On this matter, Bajaj Allianz said that their aim has always been to help patients and they have never stopped cashless service. At the same time, Care Health has also assured that the treatment process in their network hospitals will continue without any interruption. AHPI has indicated that they will soon meet the General Insurance Council to avoid such disputes in future.