Insurers' Body Slam AHPI Move To Suspend Cashless Services For Bajaj Allianz, Care Health Policyholders
Such action on part of AHPI "undermines the sanctity of a human life", especially in cases requiring emergency hospitalisation, the General Insurance Council said.
The General Insurance Council (GIC) on Tuesday denounced the Association of Healthcare Providers' (AHPI) decision to suspend cashless hospitalisation services for two major insurers, calling the move “arbitrary” and “lacking clarity”.
"We urge AHPI to immediately withdraw the advice to its members and ask them to engage constructively with the insurance companies by continuing cashless services for all health insurance policyholders," the GIC stated in a release.
On Aug. 22, the AHPI announced its intent to suspend cashless hospitalisation services for customers of Bajaj Allianz General Insurance and Care Health Insurance from Sept. 1, 2025. This action was arbitrary, lacking clarity or actionable details, the GIC said.
Bajaj Allianz and Care Health Insurance will be meeting the AHPI to take up the matter, the association had said. If the issue is resolved, it will withdraw the advisory, it added.
This sudden unilateral action on part of AHPI has created unnecessary confusion and concerns among citizens, impacting the trust in the health insurance ecosystem, GIC's statement said. Instead of enabling dialogue and resolution, a press statement was abruptly issued, prejudicing the interests of policyholders across the country, it added.
Disruption in cashless service not just directly impacts families through higher upfront spends on treatments and out-of-pocket expenses, it also threatens survival of patients in critical medical conditions requiring immediate medical attention.
Such action on part of AHPI "undermines the sanctity of a human life", especially in cases requiring emergency hospitalisation, where a policyholder should not be denied cashless treatment and be forced to make financial arrangement, the GIC said.
"As an industry, we stand united: when an insurer is unfairly targeted, the issue is much serious as it adversely affects interests of crores of citizens who depend on health insurance for financial protection and access to healthcare," it stated. Patients and families must never be put to such level of uncertainty and hardships for such reasons, it added.
