The General Insurance Council on Wednesday announced the launch of the 'Cashless Everywhere' facility, under which policyholders can get treated in any hospital and avail a cashless facility.
This initiative will aid in easing the burden of policyholders who get treated in a hospital not in the network of the insurance company, and it will be available across hospitals in India.
Currently, the option for cashless treatment is only available at hospitals where the insurance company has an agreement. In the absence of such an agreement, the policyholder has to opt for a reimbursement, delaying the claim process.
Under the 'Cashless Everywhere' initiative, the customer should intimate the insurance company 48 hours before admission for both emergency treatment and elective procedures. The claim should be admissible as per the operating guidelines of the insurance company.
Currently, only 63 per cent of customers avail cashless treatment, whereas the remaining 47 per cent opt for reimbursement claims.
Speaking at the event, Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance and Chairman of the General Insurance Council, said, "Today, if you see, only about 63 per cent of customers opt for cashless claims while the others have to apply for reimbursement claims as they might be admitted to hospitals that are outside their Insurer/TPA network. We feel this puts a significant amount of stress on their finances and makes the process long and cumbersome."
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Singhel also added that it "will not just improve the policyholders' experience but will build greater trust in the system. This we feel will encourage more customers to opt for health insurance. We also see this as a step towards reducing in the long run, eliminating fraud, which has been plaguing the industry in a big way and reducing trust in the system."
During the Global Fintech Festival (GFF) held in September 2023, IRDAI Chairman Debasish Panda had said the regulator is working with health insurance providers to launch 100 per cent cashless settlement claims at the earliest.