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Monday, September 18, 2017

Progress In Renewal Of Insurance


(Affiliated to AIBEA)
PNB House, Sir. P.M. Road, Fort, Mumbai – 400 001
Mobile : 9821 227 337 Phone no: 2266 1263 / 2262 7566


Dear Comrades,

We reproduce herebelow full text of the letter dtd 18th Sept 2017 addressed to Chairman IBA regarding Group Medical Insurance Policy by Com C H Venkatachalam, General Secretary, AIBEA for the information of our members.
With greetings,
Yours comradely,
(Anil V Prabhu)
General Secretary _______________

AIBEA/GS/2017/88                             18-9-2017
Indian Banks' Association

Dear Sir,
Reg: Group Medical Insurance Policy

As you are aware, the Group Medical Insurance Policy for the employees and officers is due for renewal from 1st October, 2017 and we learn that IBA has already advised the Banks for remitting the premium to UIIC for this purpose.  We note that there is no change in the premium charged by UIIC.

Similarly, the Policy for the retirees is due for renewal from 1-11-2017.  We learn that UIIC has advised IBA in this regard and while there is no change in the premium for the retirees' Policy (without OPD), the premium for the Policy with OPD has been increased substantially as under. 

For Retirees' Policy   Premium          Premium

with OPD                    for 2016-17    for 2017-18

Workman retirees      Rs. 14,950       Rs. 27,750

Officer Retirees          Rs. 20,010       Rs. 36,998

We feel that this hike in premium rate by UIIC is not only arbitrary but also very steep.  Matter needs to be taken up by IBA with UIIC for review and reconsideration.  We seek your intervention in the matter.

Top Up Policy for employees in service:  

Similarly, the UIIC letter to IBA also includes a Top Up scheme for the serving employees. The top Up Policy for the retirees is understandable as the scheme does not provide any buffer cover. 

But you are aware that UIIC Policy for serving employees/officers also includes a buffer coverage amount (Rs.70 crores for the year 2016-17) beyond the sum assured and the proposed Top Up facility will dilute the scheme to that extent.  Proper clarity and understanding is required on this aspect.

Since the Scheme is bilaterally settled, we urge upon you to inform UIIC that such unilateral decisions are not acceptable and any change in the Scheme needs to be mutually discussed and finalised between IBA and Unions before UIIC can make any change in the same. 

Seeking your personal attention and urgent intervention.

Yours faithfully,

⁠⁠⁠I am posting copy of message received by me on social sites 

Fwd: Medical Insurance Renewal
From: S.S.Vasan
Date: Thu, Sep 14, 2017 at 9:56 PM
Subject: Medical Insurance Renewal
*You are all aware that the Retiree Medical Policies are due for renewal on
1st November 2017.*

*The letter of UIIC Ltd., addressed to IBA detailing the renewal quotes is
attached for your benefit.*
*Kindly go through completely and decide your requirements. The options
should be communicated to the Bank  (as prescribed by them)once the
circular is received. (In the coming few days).*

The Gist of the Circular is given below for your ready reference:

*Renewal premium for *
1. Hospitalization Policy (without Domiciliary) Rs. 16443/-
*2. Renewal Quotes for policy with Domiciliary cover  Rs.31354 +GST=Rs.
3. Top-up Policy of Rs 5/- lacs premium Rs. 3225+GST=3806/-
4. One more option to  retirees only for hospitalisation policy.
*5. Retirees who opted for Domiciliary Cover last year can opt out now, if
they so desire.*
*6. Retirees who have not opted for Domicilairy Cover last year cannot opt
for now.*
*7. Existing Employees who retired during 2016-17 can opt for policy with
or without Domiciliary cover*

*Sri R Rajendra Babu, our Governing Council Member has prepared a good
Insight into the Medical Insurance Renewal.*
*The  same is reproduced below which will be of immense help in firming up
your decision in this regard:*


*In insurance cover, particularly while opting for Health Policy, we should
not calculate whether the payment of Premium is profitable for us or not.
With advancing age, the chances of falling sickness (whether domiciliary or
hospitalisation) is greater in future. So let us all be practical. *

*Another point is, if you have already the Domiciliary cover and if you
don't renew it now, due to cost factor, then you will not get this cover
again if required on a later date. The condition to be eligible for
Domiciliary Cover is to ensure its continuous renewal without a break.*

*Similarly, with regard to Top-up cover, as the medical expenses are
becoming too expensive for availing a decent and best treatment by
specialists, the present Hospitalisation cover of Rs. 4 lakhs is definitely
inadequate. If we can opt for Top-up Policy (that too from the same
Insurance Company), settling medical bills will be less cumbersome in
future to claim reimbursement.*

*There are some Retirees, particularly VRS Retirees, who may be already
having some other Policy (under Baroda Health or similar Policy), beside
the current Hospitalisation Policy of UIIC for Retirees, since they are not
eligible for contributory Medical Scheme of our bank. Now question arises
whether to continue with such Policy or not, if opted for Top-up Policy
also. This decision is left to the individual concerned. Now if the Retiree
feels present Hospitalisation cover of Rs.4 lakhs PLUS Top up Policy of Rs
5 lakhs (ie totally a cover of Rs.9 lakhs under Hospitalisation) is more
than enough for future hospitalisation expenses, they need not renew the
Baroda Health or similar Policy AFTER opting for Top up Policy.*

*However, there is a Ryder here. If there is an assurance from IBA / Bank
that the present Medical Scheme for Bank Retirees along with Top up cover
WILL CONTINUE FOREVER, then we can boldly take a decision of discontinuing
Baroda Health or similar Policy. However since the present Medical
Insurance  Scheme to Retirees is subject to renewal every year, the
uncertainty of renewal as well as the uncertainty in likely 'future'
premium amount hang on our heads forever. For argument sake, in case, UIIC
or any other Insurance Company refuses to come forward to extend this
Scheme to Bank Retirees, we cannot thereafter approach any Insurance
Company for a fresh Medical Policy since (i) 85% - 90% of us would have
crossed the age limit to be eligible for a fresh Policy by then, (ii) the
premium will be prohibitively very high for individuals AND (iii) there
will be a 'pre-existing disease' clause which may make the Policy useless
for a few years when we require reimbursement  desperately.*

*Hence my sincere suggestion is: (i) Please continue with the present
Policy with Domiciliary cover as long as it is in force (whatever may be
the premium for Domiciliary cover). (ii) DON'T HESITATE to opt for Top-up
cover when offered by the present Insurance Company. (iii) If you are
having any Policy under Baroda Health Scheme or similar Policy, DON'T
discontinue altogether after taking Top-up Policy. Due to factors explained
above, you can continue the existing Policy with some minimum Policy amount
of say, Rs 2 or 3 lakhs as a cushion to fall back upon, if any contingency

*My assessment is that UIIC will continue to extend Top up Policy, since
the claims will likely be very much less under this category and will be
naturally  profitable to UIIC.*

*Finally in conclusion, please remember, we cannot avoid payment of Medical
Insurance Premium out of Pension altogether as a wasteful expenditure and
discontinue hastily, since it is an unavoidable one considering our age,
living conditions and future uncertainty with anyone's health issues.*
*The members in this group can take this debate forward for the common
benefit of all so that all can have clear cut idea and make up their minds
by the time the Bank issues the Circular for renewal."*

Rest in Next,
With Regards,
Let Us be in TOUCH,
With Regards,

Post the merger with SBI, discontent brewing among associate bank staff-Hindu Business Line

Stata Bank of India’s mega merger with its associate banks, announced on April 1 this year, has been anything but smooth for some of the latter’s employees. Officers and clerks working for the erstwhile associate banks feel they have been given a raw deal with several instances of arbitrary transfers and many officers losing out on their seniority post the transfer.
“We are being treated as second-class citizens at SBI. The management has not been hearing the issues being raised by us. We are hopeful of a solution with the management without having to go to the courts,” said KS Krishna, former General Secretary, State Bank of Travancore Employees Union.The Associate Bank Officer’s Association (ABOA), Hyderabad unit, had moved the court in April this year highlighting issues related to PF, allowances, increments, and rate of interest benefit (staff loans) not being extended to associate bank employees.
A senior official of the association said the employees are facing increased working hours as the servers at SBI are unable to handle the traffic, and they (the staff) are still adjusting to the new working conditions.The Hyderabad High Court, in its interim order dated April 10, 2017, had directed State Bank of India not to finalise options available to the employees till June 15.
To read more 

No hike in base premium for group medical insurance for bank staff-01.9.2017indu Business Line 

( This news differs with what has been mentioned in above two mail/letter)

The managing committee of the Indian Banks' Association (IBA) has approved a proposal for renewal of the group medical insurance scheme for award staff and officers.The renewed policy with United India Insurance will be effective for another one year from October 1, 2017 to September 30, 2018 on the existing terms and conditions and without an increase in base premium.
This was stated in a communication from the Human Resources and Industrial Relations Department of IBA to chief executives of member banks, which are parties to the 10th bipartite settlement /joint note dated May 25, 2015.This was after United India Insurance agreed to the proposal after taking into consideration the expected incurred claims ratio (ICR) as on September 30, 2017, which would be around 107 per cent.
As such, the premium for renewal of employees would be as under:
Award staff: Sum insured - Rs. 3 lakh; premium without GST - Rs. 10,452; GST@18 per cent - Rs. 1,881; gross premium payable per family (inclusive of GST) - Rs. 12,333.
Officers: Sum insured - Rs. 4 lakh; premium without GST - Rs. 13,935; GST@18 per cent - Rs. 2,508; gross premium payable per family (inclusive of GST) - Rs. 16,443.
Link to News item Published in Hindu Business Line


Union Petroleum, Natural Gas and Skill Development Minister Dharmendra Pradhan on Wednesday wrote a letter to Union Finance Minister Arun Jaitley, requesting him to implement pension scheme for retirees of the Regional Rural Banks (RRBs) of India like the ones in other commercial banks.

Pradhan in his letter said that as per the petitioner a tribunal award in this respect in 1991 has not been implemented. The Jodhpur Bench of the Rajasthan High Court and the Karnataka High Court have passed orders in favour of the RRB staff in the year 2011 and 2012 respectively with regard to pension and a writ petition has also been filed in the Supreme Court.

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