Group Medical Insurance Policy for Bank Employees/Retirees for the year 2026-27
Dated 22.09.2026 : As per a letter written by IBA to the banks ,the National Insurance Company Limited will continue to be the insurer for the scheme for the year 2026 -27 ( From November 2026 to October 2027 . Each bank will issue separate circular within next few days
The Indian Banks’ Association (IBA) Group Health Insurance Scheme was introduced following the 10th Bipartite Settlement / Joint Note signed on May 25, 2015 . The scheme is being renewed every year and the present policy expires in 31st, October 2026 and is being renewed for 2026-27
Salient features of the scheme are as below :
The principal highlights of the scheme are enumerated hereunder:
1.The policy which is proposed to be issued by NICL shall contain all the terms and conditions of the existing policy (2025-26) in addition to the additional coverages and benefits agreed with the Unions/ Associations on 17.07.26 and approved by the Managing Committee of IBA on 20.07.26.
Improvements agreed for the policy to be taken for the year 2026-27
- Increase in Room Rent limit to Rs.7,000 per day for Metro Cities (Delhi, Mumbai, Chennai & Kolkata). For all other centres, the existing limit of Rs.5,000 per day shall continue.
- Increase in ICU Charges to Rs. 9,500 per day for Metro Cities. For all other centres, the existing limit of Rs. 7,500 per day shall continue.
- Enhancement of Maternity Benefit to: o Rs. 1,00,000 for Normal Delivery. o Rs. 1,50,000 for Caesarean Section, inclusive of child care and vaccination expenses up to one year. (The existing provision of Rs. 20,000 stands subsumed within the revised limit.)
- Increase in Ex-gratia for Critical Illness to Rs. 2,00,000.
- Enhancement of Cataract treatment limit to Rs. 50,000 per eye.
- 6.Increase in Dependent Income Ceiling to Rs. 24,000 per month.
- .Separate limit of Rs. 2 lakh limit for Infertility (IVF) Treatment, for which the premium will be borne by the Bank.
8 . Inclusion of additional Day Care procedures such as Albumin Infusion and Peritoneal Dialysis
9 . Expenses on Oral chemotherapy shall include cost of oral chemotherapy drugs, professional consultation fees and all medically necessary investigations as advised by the consulting physician
10. Inclusion of Domiciliary Treatment for Vector-borne Diseases like Dengue & Chikungunya and specified Rare Diseases under Group B & Group C.
The premium towards the enhanced Maternity and Infertility benefits shall be obtained separately from the insurer and included while arriving at the premium payable by the Bank on behalf of employees. IBA will also explore the possibility of extending the existing policy with the present insurer for one more year, subject to the insurer agreeing to continue the policy on the existing premium together with the additional premium, if any, for the enhanced benefits and other agreed improvements. Quarterly monitoring of the TPA with participation of Union representatives.
To go through the existing scheme , benefits and terms & conditions for FY 2025-26 , Click Here
SUM INSURED
i. The sum insured for Base insurance for working employees / Officers
- Award staff: Rs 4 lakhs
b. Officers up to Scale V: Rs. 5.25 lakhs
c. For scale VI and above: Rs7 lakhs
Medical Insurance Scheme Premium – Non -Domiciliary
- GST for the premium is not included . It’s under litigation in the High Court of Kerala . A stay order has been obtained in the court till the matter is settled .
1 . Serving employees :
- Officers of Scale VI & Above : Premium of Rs 68,454 for a cover of Rs 7 lakhs
- Officers of Scale I to V : Premium of Rs 46,467 for a cover of Rs 5.25 lakhs
- Workmen: Premium of 36,200 for a cover of Rs 4 lakhs
Retiree Policy (Base Policy) premium –
Retiree with spouse
- Premium of 27,996 for a cover of Rs 3 lakhs
- Premium of 32,114 for a cover of Rs 4 lakhs
- Premium of 41,714 for a cover of Rs 5.25 lakhs
- Premium of 62,213for a cover of Rs 7 lakhs
2. Retiree Single :
- Premium of 25,197 for a cover of Rs 3 lakhs
- Premium of 30,329 for a cover of Rs 4 lakhs
- Premium of 38,552 for a cover of Rs 5.25 lakhs
- Premium of 49,770 for a cover of Rs 7 lakhs
Retiree Add-on policy premium –
For Physically / Mentally challenged dependent family member of Retiree with or without Spouse- Per dependent :
- Premium of 10,001 for a cover of Rs 3 lakhs
- Premium of 12,501 for a cover of Rs 4 lakhs
- Premium of 15,001 for a cover of Rs 5.25 lakhs
- Premium of 35,001 for a cover of Rs 7 lakhs
Top-up policy premium :
Serving Employee :
- Premium of 7,701 for a cover of Rs 1 lakhs
- Premium of 12,101 for a cover of Rs 2 lakhs
- Premium of 14,301 for a cover of Rs 3 lakhs
- Premium of 17,011 for a cover of Rs 4 lakhs
Retiree with Spouse :
- Premium of 13,126 for a cover of Rs 1 lakhs
- Premium of 21,001 for a cover of Rs 2 lakhs
- Premium of 30,801 for a cover of Rs 3 lakhs
- Premium of 41,001 for a cover of Rs 4 lakhs
Retiree Single :
- Premium of 11,152 for a cover of Rs 1 lakhs
- Premium of 17,851 for a cover of Rs 2 lakhs
- Premium of 26,176 for a cover of Rs 3 lakhs
- Premium of 32,801 for a cover of Rs 4 lakhs
Add-on Top up policy premium for Physically / Mentally challenged dependent family member of Retiree with or without Spouse- Per dependent
- Premium of 5,001 for a cover of Rs 1 lakhs
- Premium of 10,001 for a cover of Rs 2 lakhs
- Premium of 20,001 for a cover of Rs 3 lakhs
- Premium of 30,001 for a cover of Rs 4 lakhs
Improvements to the policy agreed
Dated 17.07.2026 : Indian Bankers Association ( IBA ) had a meeting with UFBU representatives at their office in Mumbai to discuss the matter of renewal of the policy , which is ending on 31st , October 2026 .
IBA had received various suggestions regarding the renewal of the policy and those suggestions were discussed .
It’s reported that IBA and UFBU have now agreed for the following improvements to the policy and a Memorandum of Agreement is signed between them .
Improvements agreed for the policy to be taken for the year 2026-27
- Increase in Room Rent limit to Rs.7,000 per day for Metro Cities (Delhi, Mumbai, Chennai & Kolkata). For all other centres, the existing limit of Rs.5,000 per day shall continue.
- Increase in ICU Charges to Rs. 9,500 per day for Metro Cities. For all other centres, the existing limit of Rs. 7,500 per day shall continue.
- Enhancement of Maternity Benefit to: o Rs. 1,00,000 for Normal Delivery. o Rs. 1,50,000 for Caesarean Section, inclusive of child care and vaccination expenses up to one year. (The existing provision of Rs. 20,000 stands subsumed within the revised limit.)
- Increase in Ex-gratia for Critical Illness to Rs. 2,00,000.
- Enhancement of Cataract treatment limit to Rs. 50,000 per eye.
- Increase in Dependent Income Ceiling to Rs. 24,000 per month.
- Separate limit of Rs. 2 lakh limit for Infertility (IVF) Treatment, for which the premium will be borne by the Bank.
8 . Inclusion of additional Day Care procedures such as Albumin Infusion and Peritoneal Dialysis
9 . Expenses on Oral chemotherapy shall include cost of oral chemotherapy drugs, professional consultation fees and all medically necessary investigations as advised by the consulting physician
10. Inclusion of Domiciliary Treatment for Vector-borne Diseases like Dengue & Chikungunya and specified Rare Diseases under Group B & Group C.
The premium towards the enhanced Maternity and Infertility benefits shall be obtained separately from the insurer and included while arriving at the premium payable by the Bank on behalf of employees. IBA will also explore the possibility of extending the existing policy with the present insurer for one more year, subject to the insurer agreeing to continue the policy on the existing premium together with the additional premium, if any, for the enhanced benefits and other agreed improvements. Quarterly monitoring of the TPA with participation of Union representatives.
However the report is silent about the bearing of premium by the banks towards premia to be paid by the pensioners .
