The general insurance industry on Tuesday presented a united front after the Association of Healthcare Providers – India, an industry body representing hospitals and healthcare institutions, advised its member hospitals in North India to stop providing cashless treatment facilities to policyholders of Bajaj Allianz General Insurance effective from September 1, 2025.

The decision from AHPI was reportedly based on complaints from member hospitals that the general insurance company refused to revise hospital reimbursement rates in line with rising medical costs.

“This sudden unilateral action on the part of AHPI has created unnecessary confusion and concerns amongst citizens, impacting the trust in the health insurance ecosystem. Instead of enabling dialogue and resolution, a press statement was abruptly issued, prejudicing the interests of policyholders across the country,” General Insurance Council, the industry body representing the general insurers, said in a statement.

“The General Insurance Council denounces the unilateral approach adopted by AHPI. We urge AHPI to immediately withdraw the advice to its members and ask them to engage constructively with the insurance companies by continuing cashless services for all health insurance policyholders. We remain committed to building a healthier and more resilient India, and we invite all stakeholders to come together in a spirit of partnership,” the statement said.