Insurance body asks AHPI to withdraw advisory on Bajaj Allianz, Care Health

The General Insurance Council has asked AHPI to revoke its advisory stopping cashless treatment for Bajaj Allianz and Care Health policyholders, citing risks to patients and families

The General Insurance Council, the industry body for non-life insurers, has asked the Association of Healthcare Providers–India (AHPI) to withdraw its advisory asking member hospitals in north India to stop offering cashless treatment to policyholders of Bajaj Allianz General Insurance and Care Health Insurance.

 

The council has called on AHPI to engage constructively with the insurers while continuing to provide cashless services to all health insurance policyholders.

 

Last week, the AHPI advised its member hospitals in north India to stop providing cashless treatment facilities for policyholders of Bajaj Allianz General Insurance and Care Health Insurance with effect from September 1, 2025. There are over 15,000 member hospitals, including Max Healthcare and Medanta, which would now stop cashless treatment by the insurer. 

AHPI represents member healthcare providers and supports efforts to build a national framework for universal health coverage, with a focus on improving access, affordability, availability, and quality of healthcare. 

“This action was arbitrary, lacking clarity or actionable details. This sudden unilateral action on part of AHPI has created unnecessary confusion and concerns amongst citizens, impacting the trust in the health insurance ecosystem,” the General Insurance Council said in a statement on Tuesday. 

“The General Insurance Council strongly believes that any action that disrupts cashless access ultimately harms the citizens,” it said, adding that 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. 

 

Further, the council has backed the health insurers and highlighted that they are being unfairly targeted. “As an industry, we stand united: when an insurer is unfairly targeted, the issue is much serious as it adversely affects the interests of crores of citizens who depend on health insurance for financial protection and access to healthcare,” the council said in its statement. 

 

Meanwhile, responding to the council’s statement, AHPI issued a statement on Tuesday saying their advisory to member hospitals regarding cashless services for Bajaj Allianz policyholders is “neither arbitrary nor lacking in clarity”, as has been suggested by the General Insurance Council.

 

It added that it is not certain of the council’s locus standi in this specific matter between hospitals and a particular insurer. 

 

“AHPI has been receiving numerous complaints from member hospitals over the past several months regarding reimbursement delays, arbitrary deductions, and non-revision of tariffs despite rising medical costs. In line with due process, AHPI issued a formal notice and held extensive consultations with hospitals before arriving at this decision,” the statement added.

 

A meeting between Bajaj Allianz General Insurance and AHPI officials has been scheduled on Thursday to find an amicable solution to the issue.

 

“It is important to note that executives of Bajaj Allianz have since initiated meetings with AHPI and several member hospitals to address these concerns constructively. Discussions are ongoing in the spirit of resolving the issues in the interest of patients and providers alike. Even General Insurance Council will hold a meeting with us. We hope to resolve issues at the macro level,” AHPI said. 

 

Reports also suggested that AHPI is likely to write to Competition Commission of India and the Insurance Regulatory and Development Authority of India on the issue.

 

“The Council’s press release calling our action arbitrary is misplaced. Our notice was based on specific grievances raised by member hospitals, and these will be presented before Bajaj Allianz on August 28. We are not against insurers, but such issues need resolution through dialogue and standard protocols, not blanket statements,” Girdhar Gyani, director general, AHPI, said.

 

“This will be a test case, and based on the meeting’s outcome, we will decide our next steps. Ultimately, our aim is to resolve these issues in the long run by defining standard operating procedures for how insurers and hospitals should work together on costs and claims,” he added.