IBA and UFBU meeting 13.06.2025

🏦 UFBU Circular Reveals New IBA Health Insurance Terms for 2025–26 — But Are Bankers Really Benefiting? 

The much-awaited meeting between the Indian Banks' Association (IBA) and the United Forum of Bank Unions (UFBU) was held on 13 June 2025 at the IBA Headquarters in Mumbai. As expected, the meeting focused on the renewal of the Group Medical Insurance Policy for bank employees and retirees for the policy year 2025–26.

While the UFBU Circular dated 13.06.2025 outlines several improvements, many bankers and retirees feel the real issues remain unresolved, especially regarding the TPA-led claim settlement process.

📌 Key Takeaways from the IBA-UFBU Meeting

The meeting was chaired by Shri Rajneesh Karnatak, MD & CEO of Bank of India and Chairman of IBA’s Negotiating Committee. Representatives from all major banking unions participated, including AIBEA, AIBOC, BEFI, NCBE, INBOC, INBEF, NOBW, and NOBO.

Here’s what was decided:

✅ Revised Sum Insured:

• Award Staff: ₹4 lakhs (up from ₹3 lakhs)

• Officers (Scale I to V): ₹5.25 lakhs (up from ₹4 lakhs)

• Scale VI and above: ₹7 lakhs (up from ₹4 lakhs)

✅ Increased Corporate Buffer:

• Raised from ₹100 Crores to ₹125 Crores.

✅ Key Medical Additions & Enhancements:

• Cataract Surgery Cap: ₹40,000 per eye

• Robotic Surgery: Allowed if medically necessary

• Thyroid Cancer: Included under critical illness

• Hormonal Therapy (Cancer) & Immunotherapy (Non-cancer): Now covered

• Dependent mentally/physically challenged family members of retirees can be included as add-ons

✅ Top-Up Options Introduced:

• Additional coverage of ₹1 Lakh, ₹2 Lakhs, or ₹3 Lakhs now available.

• Premium to be paid by serving employee/retiree opting for the top-up.

✅ Digital Claim Settlement:

• IBA announced development of a mobile app for claims up to ₹25,000, aimed at reducing paperwork and speeding up settlements.

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⚠️ But Here's the Bitter Truth…

While these changes look promising on paper, the reality for many employees and pensioners tells a very different story.

Despite repeated updates to the policy, most health insurance claims continue to be routed through third-party administrators (TPAs). These agencies, often outsourced, delay claim settlements, raise unnecessary objections, and frustrate employees to the point of abandonment.

Employees often report:

• Long waiting periods for claim approval

• Repetitive document requests

• Non-transparent communication

• Claims being denied on technical grounds

As a result, many bank employees—both working and retired—are now opting for private health insurance outside of the IBA group scheme, paying out of their own pockets just to protect their families from rising healthcare costs and claim delays.

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🧾 A Policy That Exists, But Rarely Works?

The intent behind these meetings and policy updates is to ensure a social safety net for bankers. But the execution is marred by inefficient intermediaries and lack of accountability. What's the point of a health policy when a critically ill retiree cannot access funds in time?

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🗣️ Our Take: Time for Real Accountability

While the UFBU and IBA have made efforts to improve the policy on paper, TPAs and insurers must be made accountable for hassle-free and timely settlement of claims. Employees need stronger grievance redressal, and unions must push for direct settlement models instead of third-party routing.

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📢 Final Word

The UFBU Circular dated 13.06.2025 indeed brings updated terms and new benefits for the 2025–26 period. But until these policies translate into real-world relief, the banking community will continue to remain skeptical.

Let us know your thoughts in the comments. Are you satisfied with the policy changes? Have you faced issues with claim settlements? Share your experience