Tata AIG has now become the fourth health insurance company to suspend the cashless facility at Max hospitals, following Star Health, Niva Bupa, and Care Health. Star Health and Niva Bupa have suspended the facility for all 22 Max hospitals across the country, while Care’s cashless claim suspension is limited to Max hospitals in Delhi NCR.
Following Star Health, Niva Bupa, and Care Health, Tata AIG has now become the fourth health insurance company to suspend cashless services at Max hospitals.
Star Health and Niva Bupa have suspended the service at all 22 Max hospitals nationwide, while Care’s cashless claim suspension is limited to Max Hospital in Delhi NCR.
Max Hospital stated that Tata AIG suspended cashless services at its hospitals effective September 10. The insurance company also demanded a sudden tariff reduction.
According to a Max Hospital spokesperson, “Max Healthcare and Tata AIG General Insurance Company negotiated, renewed, and signed a two-year tariff agreement effective January 16, 2025, to January 15, 2027. However, in July 2025, Tata AIG suddenly called a meeting and demanded a further rate reduction.”
The spokesperson added, “They proposed a unilateral tariff reduction and threatened to suspend cashless services.” When we did not accept this, cashless services in our hospitals were suspended from September 10, 2025.
Meanwhile, Tata AIG said it has made special arrangements to avoid inconvenience to customers. All claims are being prioritized and processed expeditiously.
Earlier this month, the Association of Healthcare Providers of India demanded that insurance companies immediately restore cashless services for policyholders, citing the significant inconvenience faced by patients in hospitals.
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