Development On Medical Insurance Scheme

Shri. Arun Tiwari,

Chairman & Managing Director,

Union Bank of India,

Head Office,

Mumbai 400021.

Dear Sir,

               Re :Renewal of Medical Insurance premium with amendments

               to the existing Insurance Policy for retired employees – 2016/17.

                                         

This is in continuation of our letter No. 101/2016-17 dated 3rd October 2016

addressed to the Bank on the increase in Insurance premium by UIIC/IBA. We understand that Bank has begun informing the retired employees that the United India Insurance Company Ltd., has revised the premium for renewal of Group Health Insurance Scheme for 2016-17, informing them about the revised insurance premium amounts with options for (1) Normal Policy - without domiciliary cover and (2) with domiciliary expenses benefits option.

Objections: At the outset, we reiterate that the abnormal hike in premium and unilateral decisions of UIIC are not acceptable to us and these should have been discussed with AIBRF, our apex level retirees organization. The unilateral declaring of the new provisions of the premium & other conditions for retirees are objectionable because:

a) They are without any consideration of any notice period to the retiree,

b) nor understanding the financial difficulty or trauma which a retiree is undergoing or likely to undergo because of this unjustified hike in premium and

c) also the short period within which the amount is required to be paid.

Financial constraints: We particularly draw attention of the Management, that since the retirees themselves have to bear the cost of premium, unlike serving employees where Bank is forced to make payments, many of them whose pension is less than this steep increase in premium (like family pensioners, pre-1986 retirees, substaff and part time employee retirees, etc), will face tremendous

difficulties in subsiding their lives in this inflationary era, causing upsets to their families as well.

Procedure irregularities: We understand the Bank has instructed all the retired employees who are presently the members of the existing Insurance scheme, to communicate their options to the Bank about acceptance of the renewal premiums as per new guidelines, by email to a dedicated Union Bank email id before 22/10/2016; and those who fail to communicate it would automatically be presumed by the Bank to have opted for the existing scheme without domiciliary expenses benefits option.  The Bank further informed that designated accounts of the retired employees would be debited for the premium amount as early as 24/10/2016.

This short notice of the Bank as above has created confusion and panic in the minds of the retired employees, as they are required to respond to the Bank within 10 days and that too under the threat of defaulting, because of low balances or non response by email to the options being provided. We also understand that the Bank has instructed the retired employees to send their option letters with signatures and/or electronically scanned copies, without taking into consideration the inability of many retirees to be able to comply with such instructions, which may make them defaulters in this life-saving Insurance Scheme.

Lack of clarification from UIIC: In the absence of clear guidelines from UIIC or the Bank on several aspects of the new policy, is also a factor for retirees being unable to take  any informed decisions.  The following are some of the queries that require clarification:

1. If the retired employee opts for Normal Policy in current year, whether  would he/she be allowed to opt for the insurance policy with domiciliary expenses benefits at the time of renewal in the next year;
2. Likewise, if the retired employee opts for policy with domiciliary expenses benefits in current year, whether he would be allowed to opt out of this policy and permitted to opt for normal policy in the next year.
3. The procedure for reimbursement of domiciliary treatment should be stated to avoid UIIC backing out of reimbursing the same, as was done in the earlier policy.
4. The frequency of the period within which the retired employees are permitted to seek the reimbursement for domiciliary treatment. i.e. weekly, monthly, or quarterly etc
5. Whether the retired employees would be sanctioned reimbursement for domiciliary treatment as per the list of 59 diseases circulated by the Bank, such as Diabetes, hypertension etc., on self certification or based on prescription of the general / family doctor or is it compulsory to obtain prescription from the hospital.
6. Are those who retired from the Bank in the last year, entitled to Opt under this new Scheme?

Since these are fundamental changes in the existing insurance policy, the Bank ought to issue clarifications so that retirees can take informed decisions about the fresh options.

We are constantly repeating that many retirees do not possess internet facility at home, and many others live in the far flung corners of India in their native place, away from the modernized metro/urban area, deprived of electronic usage of banking systems.  Moreover, many very senior  retired employees are not familiar with the internet system, including family pensioners, sub-staff etc. With the above stated shortcomings, how can the Bank expect retired employees to send the option letters with signatures and the scanned copies, or to be submitted to the concerned department via email. The already panicked retired employees will be psychologically scarred and mentally over burden by such instructions of the Bank. Would it not be more prudent to follow the same procedure of last year, when Bank instructed the retired employees to deliver the option letters to the pension paying branches and the branch, in turn, should send the scanned copies to the concerned department at Central office.

It was the experience of the Bank last year that many of the retired employees did not receive the letter from the Bank in time, hence they were deprived of the benefits of this Insurance  Scheme.  Their appeals may still be lying with you. In order to avoid reoccurrence of such situation, we request you to adopt the last year’s procedure with suitable corrections, to seek Option letters for insurance scheme from the retired employees.  

Financial assistance to retirees: Further, in view of the serious financial complications because of festival season expenses, or limited pension amounts, in which many retirees find themselves, we request you to kindly consider the following suggestions to extend financial assistance to the retirees to enable them to continue in the Insurance Medical Scheme:

1. Majority of the retired employees withdraw their pension immediately after it is credited. This will be specifically true this month due to festivals of Dassera & Divali. Therefore, there might not be sufficient balance to debit the large amount of premium on 24/10/2016. Therefore, if the premium amount is recovered coinciding with the date of credit of the pension of  31st October 2016, most of the retirees can remain part of the Insurance Policy.
2. It would be even more favorable for the retiree if the Bank agrees to pay the premium upfront to UIIC, as this would lessen the burden on retirees, and recover the amount in several installments from the future pension payments of the retirees, or give loans or advance pension to mitigate the high cost burden of retired employees  to pay premium in one go.
3. Bank should  consider subsidization of the premium amount from UBIREMAS to retirees, as has been done last year by several Banks.
4. Bank can offer Option to retirees to Opt for Insurance Policies of Rs.2 lac Rs, 3 lac or Rs.4 lac depending on their affordability.
5. Top-up policy be added to permit holding of single policy by the retiree, and discontinuation of other Insurance policies.
6. In the case of family pensioners, since only single life is covered, the proportionate deduction in the premium amount be worked out. Considering the hefty premium charged via-a-vis the family pension, specific exemption in the case of family pensioners should be made.

7. Further, the amount of insurance premium by the family pensioners should be compensated by the bank by reimbursing them by way of subsidy from out of Staff Welfare Fund.

Your thoughtful consideration of the above suggestions will impart a feeling of well being & belonging to the retiree to his/her erstwhile Bank.

We are prepared to have detailed discussions in continuation of our earlier talks to find solutions to the vexing issues of the retirees on the steep hike in Insurance premium.

We await your response to this letter,

Regards,

     Yours faithfully,

      (R. K. Powar)

    General Secretary