AHPI revokes advisory to stop cashless services for Bajaj Allianz clients

There is an urgent need for a health regulator to ensure transparency and fairness across the healthcare ecosystem, GI Council Chairman

The Association of Healthcare Providers (India) (AHPI) has withdrawn its advisory to member hospitals on stopping cashless services for policyholders of Bajaj Allianz General Insurance with immediate effect. 

This came after the Pune-based insurer agreed broadly on the issues raised by the association in their meeting in Delhi

on Thursday. 

“AHPI is happy to withdraw the suspension notice served on Bajaj Allianz with immediate effect,” the association said in a statement on Friday. 

“We are pleased that the matter has been resolved in the interest of policyholders and citizens who must never face interruptions in their access to cashless healthcare,” said Tapan Singhel, managing director (MD) and chief executive officer (CEO), Bajaj Allianz General Insurance. 

However, he also highlighted that there is an urgent need for a strong health regulator after this recent episode.

“Insurers have always worked directly with hospitals to address operational realities and we will continue to do so in a spirit of partnership. At the same time, episodes of this nature only reinforce the urgent need for a strong health regulator. This, we have been proposing for a while now to safeguard citizens’ interests and ensure transparency and fairness across the healthcare ecosystem,” Singhel said. 

During the meeting, AHPI raised several issues with the insurer, including delays in empanelling new hospitals, delays in commercial negotiations, and lack of rate revisions by insurers, which has led to financial stress for hospitals. 

“We urge all insurers to work in partnership with hospitals and restore cashless services at member hospitals, as the disruption is placing an unfair financial and emotional burden on patients,” said Girdhar Gyani, Director General, AHPI. 

He added that the insurers need to engage with member hospitals regularly to revise outdated rates, setting up transparent

grievance mechanisms, and respecting clinical autonomy.

 

Meanwhile, the Delhi Medical Association Nursing Home Forum has filed a complaint with the insurance regulator against alleged anti-competitive practices by insurers acting collectively under the General Insurance Council. 

The forum has urged the regulator to investigate the council’s role in alleged cartelisation and ensure fair, inflation-linked tariffs for hospitals. 

Earlier this week, the General Insurance Council — the industry body for non-life insurers — had urged AHPI to withdraw

its advisory. 

“This action was arbitrary, lacking clarity or actionable details. This sudden unilateral move by AHPI has created unnecessary confusion and concern among citizens, impacting trust in the health insurance ecosystem,” the Council said in a statement on Tuesday. 

Last week, AHPI issued an advisory asking member hospitals in North India to stop offering cashless treatment to Bajaj Allianz General Insurance policyholders from September 1.