# Discussions with IBA on Group Medical Insurance Policy
**Circular No. 30/11/2026/44**
**Date: 17 July 2026**
### Summary
The All India Bank Employees’ Association (AIBEA) has issued Circular No. 30/11/2026/44 to update all office bearers, state federations, and members on the recent discussions held with the Indian Banks’ Association (IBA) regarding the renewal of the Group Medical Insurance Policy.
As the current policy is due for renewal on 1 November 2026, the United Forum of Bank Unions (UFBU) provided various structural recommendations. The 17 July meeting with IBA resulted in substantial enhancements to coverage limits and new inclusions across room rents, maternity and child care, critical illness, cataract treatments, and specialised procedures like Infertility Treatment (IVF). These negotiated improvements will take effect from the upcoming renewal date.
### Key Policy Changes & Enhancements
* **Room and ICU Bed Charges:** The hospital admission room rent limit is increased to ₹7,000 for Delhi, Mumbai, Chennai, and Kolkata (the existing limit of ₹5,000 remains elsewhere). ICU charges in these four major metros are raised to ₹9,500 (₹7,500 elsewhere).
* **Maternity, Child Care, and IVF:** Maternity expenses have seen a significant increase to ₹1,00,000 for normal delivery and ₹1,50,000 for Caesarean sections, subsuming child care and vaccination costs (up to one year of age). Additionally, a landmark separate limit of ₹2,00,000 has been set for Infertility Treatment (IVF) for eligible employees, with the premium borne by the Bank.
* **Critical Illness & General Treatments:** The ex-gratia payment in case of critical illness is increased to ₹2,00,000. Cataract treatment caps are raised to ₹50,000 per eye. The dependent income limit for insurance eligibility has also been increased to ₹24,000. * **Day Care & Domiciliary Expansion:** New inclusions under Day Care feature Albumin Infusion, Peritoneal Dialysis, and oral chemotherapy (including drugs, consultation, and necessary
investigations). Domiciliary treatment has been expanded to cover Vector-borne diseases (Dengue, Chikungunya) and specific rare diseases (Groups B and C under the Ministry of Health & Family Welfare). * **Implementation:** These changes take effect on 1st November 2026. The IBA will explore an extension with the existing insurer, maintaining the base premium alongside the additional costs for these enhanced inclusions. TPA performance monitoring will also become quarterly, with union leaders invited rotationally to review meetings.
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### Full Text of the Circular
# **ALL INDIA BANK EMPLOYEES’ ASSOCIATION**
**Central Office: “PRABHAT NIVAS” Regn. No.2037**
**Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001**
## **CIRCULAR No. 30/11/2026/44**
**17-7-2026**
**To Office Bearers, State Federations and All India Bankwise Federations, All unions**
Dear Comrades,
## **Discussions with IBA on Group Medical Insurance Policy**
The Group Medical Insurance Policy is due for renewal from 1-11-2026. Hence UFBU had given various suggestions. Today there was discussion between IBA and Unions and we give below the gist of the discussions of the meeting.
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.
All the revision mentioned from point 1 to 12 above will be effective from 1st November, 2026. Other improvements suggested by the Unions/ Associations will be discussed with the Insurance companies to explore feasibility.
With greetings,
Yours Comradely,
**C.H. VENKATACHALAM**
**GENERAL SECRETARY**
2026-07-17_AIBEA_Circular_30_11_2026_44_Discussions_IBA_Medical_Insurance.pdf