There is news of concern for health insurance policyholders before the festive season. Tata AIG Insurance has stopped the cashless claim settlement service in Max Hospitals. That is, now there will be no cashless service on treatment. The patient will have to pay the entire money himself, which will later be the rear. Earlier, Star Health and Niva Bupa have also closed these service in Max hospitals across the country. At the same time, Care Health Insurance suspended this universal in Max Hospitals in Delhi-NCR only.
Why did the dispute happen?
Max Healthcare says that Tata Aig signed a two -year tariff agreement from 16 January 2025 to 15 January 2027. But in July 2025, the company suddenly demanded further cuts and threatened that the cashless facility would be stopped if their conditions were not accepted. Max hospitals rejected it and then the cashless facility from 10 September 2025 closed for TATA AIG policyholders.
Max made it clear that they have created a special express desk in hospitals so that patients would have easy claim to claim and they do not have to pay the entire money from their pockets immediately for treatment. However, no formal talks are going on with Tata Aig on this issue yet.
Insurance companies arguments
Tata Aig says that they have made special arrangements for customers do not have any problem. All claims are being processed with priority so that patients continue to get treatment and convenience without interruption. The company claims that their service teams are monitoring every case and giving full support.
Case of Star Health, Niva Bupa and Care Health
Star Health and Niva Bupa have discontinued cashless facilities in 22 Max hospitals across the country.
Care Health Insurance has suspended this facility only in Max Hospitals in Delhi-NCR. On 10 February 2025, Max reported this to Care Health in writing.
Max Healthcare alleges that NIVA BUPA is continuously emphasizing 2022 level rates and demanding further deficiency, which may be inappropriate and dangerous for the safety of patients according to the hospital.
Patients will affect
This dispute is directly affecting the patients who have a policy of these insurance companies. Now they will not get a cashless facility and will have to pay themselves first for treatment, later the claim will have to be taken from the insurance company. At the moment, there are indications from Tata Aig that efforts are on to resolve the case and solution may come out in the coming days.