Bangalore: The main reason to avail a health insurance is that if you or your family member needs medical treatment, the immediate finances is met. And if we are considering of the cashless settlement policies, these are aimed to go a step further. Many insurance companies hype about cashless settlement policies being very customer-friendly and convenient. The policyholders preferred the cashless system of claiming health insurance last year to cash reimbursements. But have you heard of the recent controversy involving insurance companies and the elite club of hospitals regarding the subject of cashless insurance. People who have bought these policies, did not receive a good experience. Thus this new policy of cashless insurance got withered when a few insurance companies especially the public sector general insurance companies denied cashless facility to their customers if they availed of medical treatment in five-star and corporate-structured hospitals. They denied their customers these rights on baseless grounds, stating the customer were overcharged by the hospital. According to these insurance companies,the amount charged was at times as high as 150 percent of the premium paid by the customers and in addition to this the hospital authorities charged the patients depending on whether they are covered by an insurance policy or not. The insurance companies came up with their demands that was not accepted by the hospitals. The insurance companies wanted the hospitals to reduce their rates at least by 20 to 40 percent.