Healers can get rid of all effects including disease from almost any creature, with the exception being undead units and old units. Gift of Health and the Chalice can cure undead.
Here is a more detailed description of how it works:
Quote:
* Units with Heal troops command CANNOT heal afflictions on undead units or old age afflictions.
* Old age afflictions and afflictions on undead units can ONLY be healed if you have cast the global enchantment Gift of Health or have built the artefact The Chalice and equipped it on a commander in the same province as the afflicted units. Without Gift of Health or The Chalice, you're out of luck. You can prevent old age afflictions by forging the magic items Boots of Youth or Elixir of Life, which freeze the aging process on the owner.
* There are also two magic sites that heal afflictions: Healing Spring and Lyfjaberg. It is unknown if they heal old age afflictions as well as battle afflictions, but they probably only affect battle afflictions. It is also unknown if undead are healed of afflictions, but probably not.
* Finally, afflictions caused by items such as Black Heart or Eye of Aiming cannot be healed in any way. They can be healed only if the item is removed, which is very difficult in most cases and involves powerful magic when possible at all.
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That was pulled from this thread:
http://forum.shrapnelgames.com/showt...ht=heal+undead
I hope that helps!