Tata AIG Stops Cashless Claims at Max Hospitals; Patients to Pay Upfront
Tata AIG General Insurance has become the third insurer, after Star Health and Niva Bupa, to suspend cashless claim settlements at Max Hospitals, requiring policyholders to pay upfront for treatment. The move highlights growing tensions between insurers and hospital chains over tariff agreements.
According to a Max Healthcare spokesperson, Tata AIG’s decision, effective September 10, 2025, was driven by tariff disagreements. “Max Healthcare and Tata AIG had a two-year tariff agreement from January 16, 2025, to January 15, 2027. In July 2025, Tata AIG requested further rate reductions and threatened to suspend cashless services. When we did not agree, they suspended cashless facilities at our hospitals from September 10,” the spokesperson said.
Max Hospitals clarified that there was no dispute over existing tariffs and emphasized that further reductions could compromise patient safety and quality of care. To assist patients, the hospital has set up an express desk to help them claim reimbursements from insurers without paying upfront.
Tata AIG assured its policyholders that claim settlements would remain smooth. “Special arrangements are in place to ensure customers face no inconvenience. All claims are being prioritized and fast-tracked, ensuring uninterrupted access to treatment and care. Our dedicated service teams are monitoring each case to provide complete support,” said a Tata AIG spokesperson.
