Tata AIG has suspended the cashless facility at Max Hospitals across India.
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NEW DELHI — Tata AIG has suspended the cashless facility at Max Hospitals across India. It has become the third health insurer after Star Health and Niva Bupa.
Star Health and Niva Bupa suspended the facility for all 22 Max Hospitals across the country. Notably, Max Hospitals has suspended Care Health’s cashless claim suspension at Max Hospitals in Delhi NCR.
In a statement, Max Hospitals said that Tata AIG suspended cashless services at its hospitals from September 10. It added that the insurer also demanded an abrupt downward tariff revision.
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"Max Healthcare and TATA AIG General Insurance Company had negotiated, renewed, and signed a two-year tariff agreement effective from January 16, 2025, until January 15, 2027. However, in July 2025, TATA AIG abruptly sought a meeting and demanded further rate reductions," according to a Max Hospital spokesperson.
“They unilaterally proposed a downward revision of the agreed tariffs and threatened to suspend cashless services. When we did not accept it, cashless services at our hospitals were suspended effective September 10, 2025,” the spokesperson said.
Meanwhile, Tata AIG noted that it has put in place special arrangements to ensure that customers face no inconvenience.
"All claims are being prioritised and fast-tracked, allowing policyholders to continue receiving uninterrupted and seamless access to treatment and care. Our dedicated service teams are monitoring every case closely to provide complete support and ensure zero disruption for our customers," the health insurer added.
On Niva Bupa, Max Healthcare spokesperson clarified that the hospital continued cashless services long after ending the contract and that "any further reduction is unviable".
Earlier this month, the Association of Healthcare Providers of India (AHPI) demanded that insurance companies immediately restore cashless services to policyholders, as patients faced severe inconvenience at the hospitals.
Such delays in empanelment are restricting patient choice and forcing many families into the reimbursement route, which defeats the purpose of health insurance.
“AHPI strongly insists that cashless services must be restored immediately to all affected hospitals, to protect patients from financial and emotional stress, and empanelment of new hospitals must be expedited, so that patients can access care across India without disruption,” said the Association, representing over 15,000 hospitals and healthcare institutions across the country, last week.