New Delhi, Sep 26 (NationPress) Tata AIG has halted the cashless service at Max Hospitals nationwide. This action marks the third instance of a health insurer doing so, following similar moves by Star Health and Niva Bupa.

Both Star Health and Niva Bupa have ceased cashless services for all 22 Max Hospitals in the country. It is important to note that Max Hospitals has also suspended the cashless claim service from Care Health at its facilities in Delhi NCR.

In a statement released by Max Hospitals, it was revealed that Tata AIG suspended cashless services at their hospitals starting from September 10. The insurer is reported to have demanded a sudden reduction in tariffs.

According to a spokesperson from Max Hospital, "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, TATA AIG sought an unexpected meeting in July 2025, requesting further cuts in rates."

The spokesperson continued, "They unilaterally suggested a downward adjustment of the agreed tariffs and warned of cashless service suspension. When we declined their request, the cashless services at our hospitals were suspended effective September 10, 2025."

Meanwhile, Tata AIG has assured that it has implemented special measures to prevent any inconvenience for its customers.

"All claims are receiving priority processing, ensuring policyholders continue to enjoy uninterrupted access to treatment and care. Our dedicated service teams are closely monitoring every situation to provide comprehensive support and ensure no disruption for our clients," stated the health insurance provider.

On the matter of Niva Bupa, a Max Healthcare representative clarified that the hospital maintained cashless services long after the contract was terminated, emphasizing that "any further reductions are not feasible."

Earlier this month, the Association of Healthcare Providers of India (AHPI) urged insurance companies to promptly reinstate cashless services for policyholders, as many patients have been facing significant challenges at hospitals.

Delays in empanelment are limiting patient options and compelling numerous families to resort to reimbursement methods, which undermines the purpose of health insurance.

"AHPI strongly insists that cashless services be reinstated immediately at all affected hospitals to alleviate financial and emotional strain on patients. Furthermore, the empanelment of new hospitals must be expedited, ensuring that patients can access care throughout India without interruption," stated the association, which represents over 15,000 hospitals and healthcare facilities nationwide, last week.