Tata AIG General Insurance has suspended the cashless claim settlement facility across Max Healthcare hospitals, becoming the third insurer to do so. Before this, Star Health and Niva Bupa had already withdrawn cashless claim settlements at Max hospitals nationwide.
Breakdown of the two-year tariff agreement
According to Max Healthcare, Tata AIG’s move follows the insurer’s demand for 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,” a Max Healthcare spokesperson said.
“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,” the spokesperson added.
Escalating industry tussle and patient impact
To mitigate the impact on patients, Max Healthcare said it has set up an express desk to assist them in filing reimbursements with insurers, so that patients do not have to make upfront payments at Max hospitals.
“At this stage, there are no ongoing discussions with TATA AIG on this matter,” the company spokesperson noted.
The healthcare provider further stated that there was no tariff dispute with Tata AIG and that any additional reduction in charges is unviable, warning that it could compromise both patient safety and the quality of care.
The suspension by Tata AIG comes after earlier moves by Niva Bupa and Star Health. Niva Bupa suspended cashless treatment at all Max hospitals across India, effective August 16, 2025, citing a failure to reach consensus during tariff negotiations after its agreement with Max expired in May.
In addition, CARE Health Insurance also suspended cashless claim settlement across Max hospitals in the Delhi NCR region.