Group Medical Insurance Policy for Bank Employees and Retirees (2025–26)

The All India Bank Employees’ Association (AIBEA) has shared the details on renewal of Group Medical Insurance Policy for the period from November 2025 to October 2026 by the banks. The scheme will continue to cover both serving employees and retirees, with several improvements and modifications. National Insurance Company has been selected as the insurer since it quoted the lowest premium.

Under the revised policy, the insurance cover has been increased. Award staff will now be insured for ₹4 lakh instead of ₹3 lakh, officers up to Scale V will be covered for ₹5.25 lakh instead of ₹4 lakh, and officers in Scale VI and above will receive coverage of ₹7 lakh, compared to the earlier ₹5 lakh. The corporate buffer has also been raised to ₹125 crore from the earlier ₹100 crore.

Medical benefits have been expanded. For cataract operations, the upper limit has been increased to ₹40,000 per eye. Hormonal therapy for cancer and immunotherapy for both cancer and non-cancer cases will now be included. Robotic surgery will be allowed where the patient’s condition requires it, subject to the treating doctor’s approval. Thyroid cancer has been added under the list of critical illnesses. 

Retired employees will also have the option to include dependent family members who are physically or mentally challenged, with an additional premium. Furthermore, retirees can choose top-up options ranging from ₹1 lakh to ₹4 lakh, with the premium to be paid by the retiree or spouse.

The premium for in-service staff will be paid by the banks. For retirees, the cost will vary depending on the level of cover and whether the spouse is included. For instance, retired workmen can opt for insurance of ₹3 lakh at a premium of ₹27,001 or ₹4 lakh at ₹31,001. Retired officers up to Scale V will have coverage of ₹5.25 lakh at ₹40,231, while officers in Scale VI and above can choose ₹5.25 lakh or ₹7 lakh cover, with premiums of ₹40,231 and ₹60,001 respectively. Additional charges will apply for top-ups and for covering dependent family members with disabilities.

The policy will also cover treatment for age-related eye diseases such as macular degeneration, targeted therapies for cancer including monoclonal antibody treatment, and domiciliary care for employees and their dependents. Retired workmen will have the option to take either a ₹3 lakh or ₹4 lakh policy, while senior officers can opt for ₹5.25 lakh or ₹7 lakh. 

Employees will be able to update dependents in case of marriage or childbirth before the policy begins on 1 November 2025. To monitor the performance of third-party administrators (TPAs), a committee of senior bank officers will regularly review hospitals and medical units, and action will be taken in case of repeated deficiencies.

AIBEA has also raised the issue of GST on premiums. At present, only individual medical insurance policies are exempt from GST, but group policies such as this still attract tax. The association, along with UFBU, has urged the government to extend GST exemption to this group policy, particularly as it covers many senior citizens.

Finally, retirees who have not joined the scheme earlier will now be given an opportunity to enroll in the policy.