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Cashless: Conflict between hospitals and insurance companies again, now this big health insurance company’s cashless business is in trouble..
admin | September 15, 2025 6:22 PM CST

The General Insurance Council (GIC) today announced its full support for Star Health and Allied Insurance. This step has been taken in protest against the Association of Healthcare Providers India's (AHPI) threat to unilaterally and unreasonably suspend cashless services.
GIC said in its statement that this move by AHPI not only harms the interests of policyholders but also undermines people's trust in the entire health insurance system. Meeting postponed, yet a unilateral step taken. The General Insurance Council said that it had scheduled a meeting with AHPI on 2 September 2025 to find a positive and constructive solution to the issues. But AHPI postponed this meeting indefinitely without giving any date. Despite this, unilateral action was taken, which indicates confrontation rather than cooperation. Patient care should not be compromised. The Council also clarified that tariff negotiation and billing practices are common business processes between health insurance and hospitals, and should never be used as a tool of pressure by linking them to patient care. Assuring the policyholders of Star Health, the Council said that they will continue to receive cashless healthcare services without any interruption, and their insurance coverage will remain fully protected. Any kind of disruption, especially in emergencies, puts a financial burden on families and puts the patient's health at risk. Referring to reforms like Cashless Everywhere and NHCX GIC said that the health insurance industry has always tried to ensure that people across the country can get quality and affordable treatment. For this, initiatives like "Cashless Everywhere" and National Health Claims Exchange (NHCX) have been taken, which provide a seamless experience to patients across the country. The recent decision to remove GST on health insurance premiums has also brought great relief to the people. The General Insurance Council has appealed to AHPI to immediately withdraw such warnings and engage with insurers in a spirit of cooperation so that all policyholders continue to receive cashless services without any interruption. About General Insurance Council The General Insurance Council was established by IRDAI in 2001 under Section 64C of the Insurance Act 1938. This council acts as an important link between the non-life insurance sector and the insurance regulatory body (IRDAI). It also has the responsibility to bring forward the issues related to the insurance sector before the government.  


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