Mumbai, August 25: Hospitals across North India are set to suspend cashless treatment facilities for policyholders of Bajaj Allianz General Insurance starting September 1, 2025. The move comes as member hospitals of the Association of Healthcare Providers-India (AHPI) have been in discussions with the insurer over certain operational matters. The network includes major hospital chains such as Max Healthcare, Medanta, Fortis Escorts, and over 20,000 other facilities across the country.

Patients holding Bajaj Allianz policies will now need to pay for treatments upfront and later claim reimbursements from the insurer. The directive was issued by AHPI after extensive consultations with its member hospitals in the northern states, including Delhi-NCR, Punjab, Uttarakhand, and Uttar Pradesh. Hospitals in these regions have been informed of the temporary suspension, which will take effect from the beginning of September. As AHPI and insurance representatives are reportedly engaging in talks to resolve the issue, let's know why this change is taking place. Airtel and Bajaj Finance Team Up To Create Major Digital Platform for Financial Services, Initially Starting With Airtel Thanks App.

Here's Why Hospitals Are Suspending Cashless Services for Bajaj Allianz Policyholders

The suspension of cashless services for Bajaj Allianz policyholders from September 1 has been prompted by long-standing disputes between hospitals and the insurer over reimbursement tariffs and claim settlements. Hospitals under The suspension of cashless services for Bajaj Allianz policyholders from September 1 has been prompted by long-standing disputes between hospitals and the insurer over reimbursement tariffs and claim settlements. Hospitals under have raised concerns about outdated and low reimbursement rates that fail to keep pace with rising medical costs, including expenses for staff, medicines, consumables, utilities, and overheads. Air India Plane Crash: LIC and Bajaj Allianz Ease Policy Settlement Procedures to Provide Swift Relief to Victims’ Families; Check Claim Process.

Additionally, member hospitals have reported delays in claim approvals, extended timelines for pre-authorisation, and unilateral deductions in payments, making it financially unsustainable to continue offering cashless treatment under current terms. AHPI has stressed that medical inflation in India averages 7-8% annually, and continuing treatment at outdated rates threatens the quality of patient care.

While the association has repeatedly requested tariff revisions every two years, Bajaj Allianz has reportedly resisted these updates and in some cases sought further reductions. As a result, hospitals have decided to suspend cashless facilities, requiring policyholders to pay bills directly and claim reimbursements later. The insurer has expressed willingness to engage with hospitals to resolve the dispute, but until a mutual agreement is reached, the suspension will remain in effect.

(The above story first appeared on LatestLY on Aug 25, 2025 11:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).