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Tuesday, September 19, 2017

Insurance Premium Increased 400%

AIBRF letter to IBA.
                                                                                                                        Ref:2017/98                                                     Date:18.09.2017

    The Chief Executive
    Indian Banks’ Association

    Dear Sir
                   Re: Renewal Premium for UIICL Group Policy covering
                          Domiciliary Benefits for Retirees for 2017-18
                  Re: Steep Increase
    We find from UIICL Letter no UIIC/ACELL/PCS/803/2017 dated
    13.09.2017 addressed to you advising the renewal premium to be
    charged to the retirees for 2017-18.

2. We are shocked to find to there is almost 400 per cent hike in insurance premium for domiciliary facility for retirees . According to insurance company own  statement claim ratio for domiciliary facility has gone up to 200 per cent. We are unable to understand as how insurance company can increase premium by 400 per cent for domiciliary when claim  has only doubled. Many of the retirees , in particular family pensioners, pre-1986 retirees and those retired prior to 2002 can just not afford payment of hefty premium of 36998/ 277750 for renewal of policy. It is beyond their capacity. We are also unable to understand as to why such steep increase in case of retirees only  when there is no increase in premium for employees with domiciliary benefits that too for entire family for 2107-2018.

3. We find that there is no consistency in the approach of this insurance company/ broking firm  in dealing with retirees. As you are aware, in the first year they refused to honour their commitment to give domiciliary benefits to the retirees despite signing specific settlement with IBA to do so. Second year they introduced domiciliary benefits scheme   on restorative basis that too for extra premium unlike employees where domiciliary benefits continued to be unlimited with no extra premium while it is specifically written in the settlement that group insurance policy will be available to retirees on same terms and conditions and on  same premium. Now in third year, they have increased the premium by 400 hindered per cent. We are also  unable to understand and appreciate business policy of insurance company/ broking firm not to discuss/ take feedback from our organisation who represent more than 1.6 lakhs retirees who use the scheme  and pay for it before finalising renewal.

4. We humbly request you  to prevail upon UIICL to withdraw increase in premium for domiciliary benefits before you advise member banks to implement the renewal scheme.
                        With Warm Regards,    
                                                                          Yours Sincerely,

                                                                       ( S.C.JAIN)
                                                                GENERAL SECRETARY

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