The Association of Healthcare Providers – India (AHPI) has urged its members in North India to stop providing cashless treatment facilities for Bajaj Allianz General Insurance Company policyholders, with effect from September 1. 

The decision was made in response to several hospital complaints that AHPI has received about Bajaj Allianz’s failure to update hospital reimbursement rates in line with growing medical expenses.

No Cashless Insurance For Bajaj Allianz General Insurance

Responding to AHPI’s decision, Bajaj Allianz General Insurance Company stated that it was taken by surprise and that it is working with the association to arrive at a solution that is in the best interests of customers.

AHPI, which represents hospitals and healthcare institutions across the country, said it had to make the decision in response to numerous hospital complaints that Bajaj Allianz has not adjusted hospital reimbursement rates in line with the increasing medical expenses and has pressured hospitals to further lower tariffs agreed upon years ago under contracts that have now expired.

Bajaj Allianz General Insurance Payment Delay Issues

The association, which has 15,200 hospitals across India as its members, said in a statement that member hospitals have also voiced their concern for the unilateral deductions by the company, payment delays and the long time taken for issuing pre-auth and pre-discharge approvals.

AHPI has alleged that it had earlier written to Bajaj Allianz. However, there was no response to its communication by the insurer.

AHPI Director General Girdhar Gyani said that the decision was imperative considering that medical inflation regularly fluctuates around 7-8 per cent per annum, driven by rising input costs, higher medicine prices, consumables, etc.

AHPI said that a similar warning was served to Care Health Insurance on August 22, 2025. If there is no response, member hospitals will be forced to stop cashless services to Care Health Insurance beneficiaries as well, it said.