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New Delhi: Tata AIG Insurance became the third insurer to suspend the cashless claim settlement facility with Max Hospitals. Prior to this, Star Health and Niva Bupa have already suspended cashless claim settlement with Max Hospitals across the country.
Cashless claim settlement services are also not availble across Max Hospital’s Delhi-NCR facilities for CARE health insurance policyholders
While Star Health and Niva Bupa have suspended this facility for all 22 Max Hospitals across the country, CARE’s cashless claim suspension is limited to Max Hospitals in Delhi NCR.
As per a Max Hospital spokesperson, “On February 10, 2025 through official communication, Max Healthcare intimated to Care Health that we are restricting cashless services to the beneficiaries of Care Health Insurance at all our NCR hospitals with effect from Feb 17th 2025”.
Tata AIG suspended cashless services at Max hospitals from September 10, 2025. As per Max, the insurer also demanded an abrupt downward tariff revision.
“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.
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″, noted a Max Hospital spokesperson.
While Max highlighted that an express desk to help them claim reimbursements from insurers without having to make upfront payments at Max Hospitals, there are no ongoing discussions with TATA AIG on this matter. However, sources at Tata AIG have highlighted that deliberations are ongoing and that the situation would be potentially resolved in a few days.
Tata AIG also said that it has put in place special arrangements to ensure that our customers face absolutely 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”.
On the issue related to Niva Bupa, Max Healthcare spokesperson iterated that the hospital had continued to provide cashless services to Niva Bupa policyholders even though the contract expired in May 2025.
“Niva Bupa has asked Max Healthcare to further reduce tariffs, which are already pegged at 2022 levels. Max Healthcare believes that any further reduction is unviable and could compromise patient safety and the quality of care”.
Niva Bupa was not available to comment on this matter despite our request.
