Major Crisis Averted For Health Insurance Policyholders Of THESE Two Companies; Cashless Treatment Not To Be Halted From 1 September 2025

New Delhi: A major healthcare crisis that was looming over hundreds and thousands of health insurance policyholders of Bajaj Allianz General Insurance and Care Health Insurance seems to be averted now.

Association of Healthcare Providers (India) (AHPI), which had decided to stop cashless treatment to policyholders of these two insurance companies in over 15,000 hospitals with effect from September 1, has now withdrawn its advisory.

“”After intense discussion, there was broad agreement on all the issues. The Bajaj Allianz agreed to submit para-vice formal actions to AHPI by 29th September 2025,” the statement read.



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“Our goal is to engage in constructive dialogue with the insurers to resolve issues in the larger interest of patients. We urge all the 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. They also need to engage with the member hospitals regularly to revise outdated rates, set up transparent grievance mechanisms, and respect clinical autonomy,” said Girdhar Gyani, Director General of AHPI.

It must be noted that earlier this week, the General Insurance Council (GI Council), the apex body representing insurers, sternly criticized AHPI’s decision to stop cashless treatment to policyholders of two insurance companies.

GI Council has termed the decision as arbitrary, stating that this sudden and unilateral action will create massive confusion among policyholders. GIC urged AHPI to immediately withdraw the advice to its members. GI Council raised concerns over emergency hospitalization situation, during which the policyholder will be in complete haplessness for want of funds.

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