Insurers Slam AHPI Over Cashless Suspension Threat, Say Citizens’ Interests Come First
General Insurance Council criticises AHPI for announcing suspension of cashless hospitalisation services, citing concerns over citizens' interests.
Mumbai : The General Insurance Council has strongly criticised the Association of Healthcare Providers (India) [AHPI] for announcing suspension of cashless hospitalisation services for customers of Bajaj Allianz General Insurance and Care Health Insurance from September 1.
On August 22, AHPI issued a statement declaring its intent to block cashless services, a move the Council termed “arbitrary, lacking clarity or actionable details.” Insurers said the sudden announcement has caused “unnecessary confusion and concerns amongst citizens” and risks undermining public trust in the health insurance ecosystem.
The Council emphasised that the health insurance industry has consistently worked to expand access to affordable healthcare through initiatives such as Cashless Everywhere and the National Health Claims Exchange (NHCX). According to industry data, insurers settled over ₹87,000 crore in health claims in 2023-24, covering crores of policyholders.
“Disruption in cashless service not just directly impacts families through higher upfront spends, it also threatens survival of patients in critical conditions requiring immediate medical attention,” the Council said in its statement. It added that policyholders must not be forced to arrange funds during emergencies when insurance exists to provide immediate financial protection.
Calling the AHPI move a blow to citizens’ welfare, the Council underlined that the industry stands united when any one insurer is targeted. “Patients and families must never be put to such level of uncertainty and hardships,” it said.
The Council urged AHPI to withdraw its advisory and return to dialogue with insurers to ensure continuity of cashless services across hospitals. “We remain committed to building a healthier and more resilient India, and invite all stakeholders to come together in a spirit of partnership,” it added.
About the General Insurance Council
Constituted in 2001 under section 64C of the Insurance Act, 1938, the Council acts as a bridge between the Insurance Regulatory and Development Authority of India (IRDAI) and the non-life insurance industry, while also representing industry concerns to the government.