TATA AIG Insurance: The dispute between hospitals and insurance companies shows no signs of ending. Policyholders are suffering due to this dispute. Following Star Health and Niva Bupa, Max has now discontinued cashless treatment for Tata AIG Insurance as well.
Cashless Treatment: The dispute between hospitals and insurance companies shows no signs of ending. Policyholders are suffering due to this dispute. Max Hospital, one of the country’s leading hospitals, has decided to stop cashless treatment for another insurance company. After Star Health and Niva Bupa, Max has now stopped cashless treatment for Tata AIG Insurance as well. In such a situation, for cashless treatment, patients will first have to pay the bill themselves and later they can get reimbursed by submitting the bill to the insurance company.
Trouble for Insureds
Following a dispute with the hospital, Tata AIG Insurance has discontinued the cashless claim settlement service at Max Hospitals. Following Star Health and Niva Bupa, Tata AIG insurance holders are now facing further difficulties. The hospital has argued that a two-year tariff agreement was signed from January 16, 2025, to January 15, 2027. However, in July 2025, the insurance company suddenly demanded a further rate cut and threatened to discontinue the cashless service. Following the insurer’s refusal to comply with the insurance company’s terms, Tata AIG’s cashless service has been discontinued at Max Hospitals effective September 10, 2025.
Cashless treatment suspended at Max Hospital
Max Hospitals has stated that it is also suspending Tata AIG’s cashless claim settlement facility. Previously, Max had also discontinued cashless treatment for policyholders of Care Health Insurance, Star Health, and Niva Bupa. Tata AIG has now discontinued cashless services at the hospital effective September 10th. Cashless treatment has been discontinued at 22 Max hospitals across the country. The agreement between Max Hospitals and Tata AID was valid until 2027, but in July 2025, Tata AIG suddenly demanded a meeting and a further rate reduction. This sparked a dispute between another insurance company and Max Hospital regarding cashless treatment.
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