Today, a meeting was held between Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU) on the Group Medical Insurance Policy for bank employees and officers. Both IBA and UFBU have agreed to the following modifications in the policy.
The changes were finalized after a meeting held on 17 July 2026 and will come into effect from 1 November 2026, when the existing policy is due for renewal. These changes will apply to bank employees and officers of member banks excluding the State Bank of India (SBI).
IBA and UFBU Sign Memorandum of Understanding
According to a circular issued by the All India Bank Officers’ Confederation (AIBOC), representatives of all unions and associations under UFBU participated in discussions with the Indian Banks’ Association (IBA). During the meeting, both sides discussed various improvements and modifications to the existing Group Medical Insurance Scheme.
After detailed discussions, IBA and the participating unions reached a mutual understanding and signed a Memorandum of Understanding (MoU). The MoU includes several enhancements to medical insurance benefits for bank employees.
Room Rent Limit Increased
The room rent limit for hospital admission in the four metro cities—Delhi, Mumbai, Chennai and Kolkata—has been increased from ₹5,000 to ₹7,000 per day.
For all other cities and centres, the existing room rent limit of ₹5,000 per day will continue without any change.
ICU Charges Enhanced
The ICU bed charge limit has also been increased for the four metro cities. Employees admitted to hospitals in Delhi, Mumbai, Chennai and Kolkata will now be eligible for ICU charges up to ₹9,500 per day.
For hospitals located in other cities, the existing ICU limit of ₹7,500 per day will continue.
Higher Maternity Benefits Approved
The maternity benefit under the Group Medical Insurance Policy has been significantly enhanced.
The reimbursement limit for normal delivery has been increased to ₹1,00,000, while the limit for Caesarean (C-section) delivery has been increased to ₹1,50,000.
These revised limits include expenses related to child care and vaccination up to one year of age of the child. The existing provision of ₹20,000 for child care and vaccination has now been merged into the revised maternity limits.
Ex-Gratia for Critical Illness Increased
The ex-gratia amount payable to an employee in case of a critical illness has been increased to ₹2,00,000.
Cataract Treatment Limit Increased
The reimbursement limit for cataract treatment has been increased to ₹50,000 per eye.
Income Limit for Dependent Increased
IBA and UFBU have also agreed to increase the income limit for dependents eligible under the Medical Insurance Scheme.
The revised income limit has been fixed at ₹24,000.
Separate IVF Benefit Introduced
A new benefit has been introduced for Infertility Treatment (IVF).
Eligible employees will now receive a separate insurance limit of ₹2 lakh for IVF treatment. The premium for this additional benefit will be borne entirely by the bank.
Separate Premium for Maternity and IVF
The premium relating to maternity and infertility (IVF) benefits will be obtained separately from the insurer and will be included while calculating the total premium payable by the bank on behalf of employees.
Proposal to Extend Existing Insurance Policy
IBA and the unions have also proposed extending the existing Group Medical Insurance Policy with the same insurance company for one more year, provided the insurer agrees to continue the policy at the existing premium with only additional charges for the newly included benefits and other approved modifications.
Quarterly Monitoring of TPA Performance
The performance of the Third Party Administrator (TPA) will now be monitored every quarter.
In addition, leaders of unions and associations will be invited to participate in the review meetings on a rotation basis to assess the performance of the TPA.
More Treatments Included Under Day Care
Several additional treatments will now be covered under the Day Care category.
These include:
- Albumin Infusion.
- Peritoneal Dialysis.
- Expenses on oral chemotherapy, including the cost of oral chemotherapy medicines, professional consultation fees and all medically necessary investigations recommended by the treating physician.
More Diseases Covered Under Domiciliary Treatment
The scope of Domiciliary Treatment has also been expanded.
The following conditions will now be covered:
- Vector-borne diseases such as Dengue and Chikungunya.
- Rare diseases listed by the Ministry of Health & Family Welfare under Group B and Group C.
Effective Date of the New Benefits
All the revisions approved under the Memorandum of Understanding, from Points 1 to 12, will become effective from 1 November 2026.
