# Memorandum of Understanding on Medical Insurance Scheme
**Date: 17 July 2026**
### Summary
The Indian Banks’ Association (IBA) and prominent bank employee unions/associations have signed a Memorandum of Understanding modifying the Group Medical Insurance Scheme initially introduced in 2015.
The main enhancements focus on significantly increased limits for maternity care, critical illnesses, room rents in major metro cities, and introducing new coverage additions like Infertility Treatment (IVF) and specific Day Care / Domiciliary treatments. These changes are set to provide stronger health coverage for bank employees and will take effect from 1st November 2026.
### Key Revisions & Additions
* **Room and ICU Charges:** Room rent is increased to ₹7,000 for hospital admissions in Delhi, Mumbai, Chennai, and Kolkata (the existing limit of ₹5,000 continues for other centres). ICU bed charges are raised to ₹9,500 in those four metro cities (₹7,500 elsewhere). * **Maternity Expenses:** The limit is increased to ₹1,00,000 for normal delivery and ₹1,50,000 for Caesarean Section, which includes child care and vaccination up to one year of age.
* **Critical Illness & Medical Procedures:** The ex-gratia payment for critical illness is raised to ₹2,00,000. Treatment limits for cataracts are increased to ₹50,000 per eye.
* **IVF & Infertility:** A separate limit of ₹2 lakhs towards Infertility treatment (IVF) is introduced for eligible employees. * **New Day Care & Domiciliary Inclusions:** Day care covers now include Albumin Infusion, Peritoneal Dialysis, and comprehensive oral chemotherapy expenses. Domiciliary treatments are expanded to Vector-borne diseases (like Dengue, Chikungunya) and specific rare diseases listed under Govt groups B & C.
* **Implementation & TPA Review:** All revisions are effective from 1st November 2026. TPA monitoring will now be executed on a quarterly basis with union leaders invited rotationally.
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### Full Text of the Document
**Memorandum of Understanding between Indian Banks’ Association and Unions / Associations in the matter of Medical Insurance Scheme**
10th Bipartite Settlement/7th Joint Note signed between IBA
representing the management of Banks and Workmen Unions/ Officers Associations on 25-5-2015 inter-alia provided for the introduction of Group Medical Insurance Scheme for employees and officers working in Banks covered by the Settlement (other than State Bank of India). In the said settlement, it was also provided that the retired
Officers/employees have the option to join the scheme to have the medical insurance cover for self and dependent spouse, subject to payment of stipulated premium by them.
In this regard, we invited suggestions, feedback, and structural recommendations to be considered for inclusion in the upcoming Request for Proposal (RFP) from key stakeholders.
After detailed deliberations, in partial modification to Clause 31 of Bipartite Settlement and Clause 8 of Joint Note dated 8th March, 2024 it is mutually agreed that
1. Room Rent shall be increased to ₹.7000/- for admission in hospitals in the four metro cities viz., Delhi, Mumbai, Chennai, and Kolkata. For other centre the existing limit of ₹.5000/- shall continue
2. ICU bed charges shall be increased to ₹.9500/- for admission in hospitals in the four metro cities viz., Delhi, Mumbai, Chennai, and Kolkata. For other centre the existing limit of ₹.7500/- shall continue
3. For maternity expenses benefit it shall be increased to ₹.100000 for normal delivery and ₹.150000 for Caesarean Section, which is inclusive of expenses related to child care and vaccination (up to one year age of the child/children). The existing provision of ₹.20000/- subsumed within this revised limits
4. The Ex-gratia payable to employee in case of Critical illness shall be increased to ₹.200000/-
5. The limit related to treatment of Cataract is increased to ₹.50000/- per eye 6. The income limit of Dependent for the purpose of Medical Insurance increased to ₹.24000/-
7. A separate limit of ₹.2 lakhs towards Infertility Treatment (IVF) for eligible employees shall be made, the premium for which will be borne by the Bank.
8. The premium related to Maternity and Infertility shall be obtained from the insurer separately and included while arriving at the premium to be paid by the Bank on behalf of the employee
9. Extension of existing policy with existing Insurer, if they can extend policy at the same premium for one more year plus additional charge for inclusion or some changes mentioned above and others. 10. Performance of TPA Monitoring on quarterly basis is effective. Union leaders to be invited for the review meetings on rotation basis. 11. The following can be included under Day care
i. Albumin Infusion
ii. Peritoneal Dialysis
iii. 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 12. The following can be included under Domiciliary treatment i. Vector borne diseases such as Dengue and Chikungunya
ii. Rare diseases listed by Ministry of health & Family Welfare under Group B and Group C
13. All the revision mentioned from point 1 to 12 above will be effective from 1st November, 2026
14. Other improvements suggested by the Unions/ Associations will be discussed with the Insurance companies to explore feasibility.
2026-07-17_AIBEA_MoU_Medical_Insurance_Scheme.pdf