Cashless insurance facility by hospital

I am working as head of accounts department of a reputed hospital in Mumbai.
 
We are charging service tax on bill raised on insurance company for cashless insurance facility provided under sub-clause zzzzo of clause 105 of section 65. We are also taking benefit of notification 12/2003 and not charging any service tax on materials (implant, drugs) sold to the patient in the course of service.
 
Given the fact that the bill is raised on insurance company who is not service recipient, am I right in taking benefit of notification 12/2003?