UFBU’s 2026–27 group medical insurance circular describes higher treatment ceilings and updated premiums for participating bank employees and retired staff. The negotiated scheme excludes SBI, and each bank’s own enrolment directions remain important.
What is changing for the 2026–27 policy year?
The United Forum of Bank Unions (UFBU) has described the renewal terms for the combined group medical insurance scheme covering eligible serving and retired bank employees, excluding State Bank of India. Its circular No. 30/39/2026/72, dated 2 October 2026 and posted by the All India Bank Employees’ Association (AIBEA) on 7 October, follows a memorandum of understanding signed on 17 July 2026. That agreement identifies 1 November 2026 as the date for the revised benefits.
The union circular says the existing arrangement covered approximately 5.70 lakh in-service employees and 1.53 lakh retirees. These are reported scheme-coverage figures, not a count of new beneficiaries. A renewed policy and its claim terms need to be checked through an individual bank and its insurer rather than inferred solely from a union summary.
Higher room, maternity and treatment limits
| Item | Earlier | 2026–27 as described |
|---|---|---|
| Daily room rent in specified metros | ₹5,000 | ₹7,000 |
| Daily intensive-care unit rent there | ₹7,500 | ₹9,500 |
| Normal-delivery maternity benefit | ₹50,000 | ₹1,00,000 |
| Caesarean-delivery maternity benefit | ₹75,000 | ₹1,50,000 |
| Ex-gratia for critical illness of employees | ₹1,00,000 | ₹2,00,000 |
| Cataract benefit per eye | ₹40,000 | ₹50,000 |
| Dependent income ceiling per month | ₹18,000 | ₹24,000 |
The enhanced daily room and intensive-care limits are specified for six cities and their urban agglomerations: Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad. Readers comparing documents should note that a July summary mentioned four metros, whereas the later October circular explicitly names six. The increased six-city caps must not be presented as universal hospital-room limits throughout India.
The higher maternity caps incorporate the specified newborn care until discharge and qualifying vaccinations for children up to one year, within the relevant overall maternity ceiling. The base cover also introduces a separate ₹2 lakh limit for eligible infertility treatment, including in-vitro fertilisation. The circular lists albumin infusion, peritoneal dialysis and specified oral chemotherapy costs, with provisions for particular domiciliary treatments such as vector-borne illnesses and listed rare diseases. Actual eligibility depends on the policy document.
Premiums for employees: the bank pays under this scheme
The circular states that participating banks pay the premium for eligible serving employees. The quoted rates exclude Goods and Services Tax (GST).
| Serving category | Base cover | Premium without GST |
|---|---|---|
| Substaff and clerical staff | ₹4 lakh | ₹36,200 |
| Officers Scale I to V | ₹5.25 lakh | ₹46,467 |
| Officers Scale VI and VII | ₹7 lakh | ₹68,454 |
The employer-paid premium should not be mistaken for an employee salary deduction. But an individual’s coverage and authorised treatment costs must still be checked against the insurer’s operative wording.
Retirees have separate, self-paid options
The October UFBU circular gives retired employees distinct premium choices. For a retiree with a spouse, the quoted amounts before GST are ₹27,996 for ₹3 lakh cover, ₹32,144 for ₹4 lakh, ₹41,714 for ₹5.25 lakh and ₹62,213 for ₹7 lakh. A single-person policy has different quoted premiums. There are also paid add-on and top-up options, which should not be confused with the standard cover.
UFBU says the respective bank managements will issue their own circulars, after which retirees can submit choices and remit premiums. The union document does not establish one universal last date for every bank’s enrolment. UFBU has also sought bank funding of retiree premiums in its outstanding demands; that is a representation, not proof the cost has been taken over by banks.
What bankers and pensioners should do
- Check applicability: the negotiated scheme described here excludes SBI. It is not proof that every regional rural bank is covered on identical terms.
- Check your bank notice: confirm the insurer, network hospitals, claim administrator, age/dependent conditions, treatments and any enrolment deadline.
- Read the limits carefully: a maternity sub-benefit is not necessarily an extra amount on top of the overall ceiling, and enhanced metro room rent is location-specific.
- Retirees: distinguish base cover, spouse cover, additional dependents and top-up premiums before paying.
The July agreement and October circular provide a substantive explanation of proposed renewal terms for the policy year beginning 1 November. They should be used alongside, rather than instead of, a bank’s final operational and insurer documents.
Sources and References
Please consult the cited sources and check the exact applicability of any legal or employment change. Corrections are welcomed.
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