New Delhi: The General Insurance Council (GI Council), the apex body representing insurers, has sternly criticized Association of Healthcare Providers (India) (AHPI)’s decision to stop cashless treatment to policyholders of two insurance companies.
AHPI recently urged its members in North India to stop providing cashless treatment facilities to Bajaj Allianz General Insurance and Care Health Insurance policyholders, with effect from September 1.
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GI Council has termed the decision as arbitrary, stating that this sudden and unilateral action will create massive confusion among policyholders.
“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 GI Council stated in a release.
GI Council raised concerns over emergency hospitalization situation, during which the policyholder will be in complete haplessness for want of funds.
“Such action on the 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 arrangements,” the industry body said.
AHPI had said that the decision was made in response to several hospital complaints that the latter had received about Bajaj Allianz’s failure to update hospital reimbursement rates in line with growing medical expenses.
Responding to AHPI’s decision, Bajaj Allianz General Insurance Company stated that it was taken by surprise and that it is working with the association to arrive at a solution that is in the best interests of customers.
AHPI, which represents hospitals and healthcare institutions across the country, said it had to make the decision in response to numerous hospital complaints that Bajaj Allianz has not adjusted hospital reimbursement rates in line with the increasing medical expenses and has pressured hospitals to further lower tariffs agreed upon years ago under contracts that have now expired.
The association, which has 15,200 hospitals across India as its members, said in a statement that member hospitals have also voiced their concern for the unilateral deductions by the company, payment delays and the long time taken for issuing pre-auth and pre-discharge approvals.
AHPI had alleged that it had earlier written to Bajaj Allianz. However, there was no response to its communication by the insurer.
AHPI Director General Girdhar Gyani said that the decision was imperative considering that medical inflation regularly fluctuates around 7-8 per cent per annum, driven by rising input costs, higher medicine prices, consumables, etc.
AHPI said that a similar warning was served to Care Health Insurance on August 22, 2025. If there is no response, member hospitals will be forced to stop cashless services to Care Health Insurance beneficiaries as well, it said.
Meanwhile, Manish Dodega, Chief Operating Officer, Care Health Insurance told Zee News, the company received mail from AHPI on August 22 evening.
“The said communication is generic and does not carry any details such as, names of affected providers, tariff or claim deduction challenges etc. We have had a sustained, progressive association with AHPI, and even today connected with the forum to get specific information in this regard. However, they were unable to provide any specific details. We have also reached out to hospitals ( Members of AHPI) who haven’t mentioned any challenges with our services,” Dodega said.
He added that the company is confident of amicably resolving any issues with the said forum.
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