Tata AIG Insurance has suspended its cashless claim settlement facility with Max Hospitals, following in the footsteps of Star Health and Niva Bupa. This means that policyholders of these insurance companies will no longer be able to receive cashless treatment at Max Hospitals, and will instead have to pay out of pocket and claim reimbursement later. While Star Health and Niva Bupa have suspended cashless claim settlement with all 22 Max Hospitals across the country, Tata AIG’s suspension is currently in effect.
According to Max Hospitals, the suspension is due to a dispute over tariffs. Max Hospitals claims that Tata AIG demanded a downward revision of the agreed-upon tariffs, which Max Hospitals was not willing to accept. As a result, Tata AIG suspended cashless services at Max Hospitals effective September 10, 2025. Max Hospitals has stated that it will continue to provide an express desk to help policyholders claim reimbursements from insurers without having to make upfront payments.
However, sources at Tata AIG have indicated that discussions are ongoing and that the situation may be resolved in the near future. In the meantime, Tata AIG has put in place special arrangements to ensure that its customers face no inconvenience, including prioritizing and fast-tracking claims. The company has also stated that its dedicated service teams are monitoring every case closely to provide complete support and ensure zero disruption for its customers.
The dispute between Max Hospitals and the insurance companies is not limited to Tata AIG. Niva Bupa has also suspended cashless claim settlement with Max Hospitals, citing a desire to further reduce tariffs. Max Hospitals has stated that it is not willing to reduce tariffs below the 2022 levels, as it believes that doing so would compromise patient safety and the quality of care. CARE health insurance policyholders are also affected, with cashless claim settlement services not available at Max Hospitals in the Delhi-NCR region.
Overall, the suspension of cashless claim settlement facilities by multiple insurance companies is likely to cause inconvenience for policyholders who rely on Max Hospitals for medical care. However, both Max Hospitals and the insurance companies are working to find a resolution and minimize disruption for patients.