UFBU Secures Enhanced Group Medical Insurance with IBA for Bank Staff and Retirees

The policy will continue to cover both serving staff and retirees under a combined structure. The unions had raised demands for higher base cover and better inclusions in treatment eligibility.

As per information shared by IBA, nearly 98% of medical claims are below ₹3 lakh and 85% fall within ₹25,000 to ₹30,000. An app is being developed for digital settlement of claims up to ₹25,000 to minimise delays. Last year, the total claim under buffer reached ₹103 crore against the limit of ₹100 crore.

The following changes have been agreed for the policy year 2025-26:

1. The sum insured for award staff will be increased to ₹4 lakh from the present level of ₹3 lakh.
    
2. For officers up to Scale V, the sum insured will be increased to ₹5.25 lakh from ₹4 lakh.
    
3. For officers in Scale VI and above, the cover will be increased to ₹7 lakh from ₹4 lakh.
    
4. The corporate buffer amount will be increased to ₹125 crore from the current ₹100 crore.
    
5. The cataract upper cap will be ₹40,000 per eye.
    
6. Hormonal therapy for cancer and immunotherapy for non-cancer will be included in the policy.
    
7. Robotic surgery will be considered where the patient’s condition warrants such treatment, subject to vetting by the treating doctor. Thyroid cancer will also be included under critical illness.
    
8. For retirees, mentally or physically challenged dependent family members will be allowed by way of add-on. Premium will be paid by the retiree or spouse. Top-up options for ₹1 lakh, ₹2 lakh, and ₹3 lakh will be available, with premiums payable by the serving employee or retiree.

UFBU Secured an Enhanced Medical Insurance

UFBU considers the finalised policy to be a secured and enhanced health cover for bank employees and retirees.

“If the policy coverage is increased significantly, it would lead to a higher premium burden on banks. Retirees' needs also require some level of cross-subsidisation. We have urged IBA to raise the allocation for critical illness from the ₹125 crore corporate buffer. Overall, our effort has been to ensure employees are adequately protected without falling prey to exploitative hospital billing practices,” a UFBU leader told Kanal.

Questions Raised on Adequacy of Insurance Limits

While the revised policy introduces higher coverage and broader inclusions, concerns remain over whether the enhancements are adequate given India’s escalating medical costs. Critics argue that the increase in sum insured falls short of actual healthcare inflation trends.

A recent report highlighted that medical insurance limits for bank employees had remained largely unchanged since 2015, despite an average annual medical inflation rate of 14%. Hospitalisation costs alone rose by 12.8% in FY2023–24, raising doubts about the long-term sufficiency of the current revisions.

On social media platform X, Newton Kumar, posted: “After 10 years, bankers’ medical insurance limit increased. While medical inflation is 14%, the limit should be ₹11/15/20 lakh. Peanuts given by IBA to UFBU.”

Policy Gains Amid Pressures to Do More

Despite criticisms, the revised Group Medical Insurance Policy represents a negotiated improvement in cover and critical illness protections under the constraints of cost-sharing and sustainability. With IBA agreeing to expand the corporate buffer and add treatments long demanded by unions, the move marks progress in employee welfare policy. However, debate on the high-inflation healthcare economy indicates the scope of improvement and enhancement.