Cashless is the mode of claim everyone wants: the hospital and TPA settle the admissible amount directly, and the patient only pays non-covered items (deductions, sub-limit gaps, co-pay). The opposite is reimbursement - pay first, submit documents, wait for money back. Cashless removes the financial shock at the worst possible moment.
In India
Cashless was historically limited to network hospitals; the GI Council's Cashless Everywhere (2024) extends it more broadly. OPD cashless (doctor visits, pharmacy, diagnostics) is now a major differentiator too.
In practice
A planned surgery: the family gets cashless pre-authorisation, the hospital bills the TPA directly for ₹2.3 lakh, and the employee pays only the ₹18,000 of non-covered consumables at discharge.