Quick Overview
Many people feel comfortable buying health insurance through their bank. You trust the bank, the paperwork begins quickly, and the premium payment can be linked to your account. However, bancassurance works slightly differently from what most people assume.
In this article, we explain how Union Bank health insurance works, who the partner insurers are, and the key checks to consider before committing to a policy.
Union Bank of India Health Insurance: Overview
Union Bank of India is one of India’s leading public sector banks. It is also registered as a corporate agent under the IRDAI bancassurance framework (licence number CA0117). This authorizes the bank to distribute health insurance plans designed and issued by partner insurance companies.
However, Union Bank does not:
- Underwrite the policy
- Design policy terms
- Decide or influence claim outcomes
- Take legal responsibility for approvals, rejections, or payouts
All policy decisions are handled entirely by the insurer. Any support provided by the bank is administrative and advisory in nature, not authoritative.
Which Health Insurers Partner With Union Bank of India?
According to the Union Bank of India website, it currently distributes health insurance policies through the following insurers:
- Care Health Insurance
- ManipalCigna Health Insurance
Note: If you buy a policy through Union Bank, the insurance contract is issued by the respective insurer.
Popular Health Insurance Plans Available Through Union Bank
Note: Union Bank’s available plans depend on branch availability, insurer arrangements, and campaigns. Always confirm the latest options before deciding.
Pros of Buying Health Insurance via Union Bank
- Access to Established Insurers: Union Bank partners with established insurers that have solid financial and operational track records.
- Convenience: Many customers appreciate the ease of buying a policy directly at the bank. The relationship manager handles paperwork, medical tests, and onboarding, making the purchase feel hassle-free.
- Single Point of Contact: Union bank acts as the main contact during purchase, which may feel reassuring if you prefer guided assistance.
Things to Keep in Mind When Buying Health Insurance Through Any Bank
Bank ≠ Insurer
A common misconception is that banks influence claim decisions. The insurance company handles all underwriting, policy terms, approvals, and claim decisions. The bank is only the distributor and has no legal authority to influence a claim approval or rejection.
Insurer Options
Since a corporate agent has limited tie-ups (up to 9), you only see products from those partnerships. You may not see the full range of plans available in the market.
Group Health Plans
Some banks offer group policies for account holders. They may look affordable, but continuity depends on the bank–insurer tie-up. If the partnership changes, renewal pricing, terms, or availability can change. It’s good as an add-on/short-term cover but less stable than retail plans in the long term.
Suitability
Choosing the right health plan requires understanding your age, existing conditions, lifestyle, preferred hospitals, employer coverage, maternity needs, and more. Bank interactions are brief, which means these details might not always be explored in depth. The plan recommended might look good on paper, but may not fully align with your long-term requirements.
Documentation
Forms could be filled quickly amid fast-paced branch sales, and customers may sign without reviewing every medical detail. If you miss verifying any health declarations, such discrepancies could lead to challenges during claims. To avoid this, fill out your medical declarations accurately and verify them before the purchase.
Claim Support
Bank staff are trained to assist with the policy purchase process, but may not be specialized in claim handling processes. During an emergency, their support could be limited to helping you connect with the insurer. They might not provide dedicated, end-to-end guidance, claim escalation assistance, or coordination with the hospital, which is vital during claims.
How Union Bank Earns Revenue on Health Insurance?
Union Bank earns commissions from insurers for distributing their insurance products. This revenue is governed by IRDAI’s Expenses of Management (EoM) and commission regulations. This is a standard model across banks and distributors.
A few things to remember:
- Your premium remains the same regardless of the commission, and the bank doesn’t add any extra fee.
- Some insurers may offer small online discounts (often 5% to 10%), but base pricing is standardized across channels.
For transparency, Union Bank also publishes its annual commission earnings in an official commission disclosure document.
Why Choose Ditto For Health Insurance?
At Ditto, we’ve assisted over 8,00,000 customers with choosing the right insurance policy. Here’s why customers like Abhinav love us:
- No-Spam & No Salesmen
- Rated 4.9/5 on Google Reviews by 15,000+ happy customers
- Backed by Zerodha
- 100% Free Consultation
You can book a FREE consultation with us. Slots are filling up quickly, so be sure to book a call now!
Ditto’s Take on Union Bank Health Insurance
If you’re considering a health plan through Union Bank, make sure you understand how these offerings work. It generally distributes policies from a limited set of partner insurers, and some group plans exist because of specific partnerships.
These arrangements can evolve, which means the availability, pricing, or terms can change at renewal. This isn’t a drawback by itself but a characteristic of how group policies function.
Ditto, too, is an IRDAI-licensed Corporate Agent (Licence No. CA0738). Insurance is our primary business, and our work centers on suitability checks, long-term servicing, documentation support, renewals, and claims assistance.
This ensures you get help not just while buying a policy, but throughout the policy lifetime.
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