Next Meeting of UFBU With IBA

ALL INDIA BANK EMPLOYEES'
ASSOCIATION
Central Office: “PRABHAT NIVAS” Regn. No.2037
Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001 Phone: 2535 1522 Fax: 4500 2191, 2535 8853 Web: www.aibea.in e mail ~ chv.aibea@gmail.com & aibeahq@gmail.com 98400 89920
CIRCULAR NO. 28 /74/2018 /37 15-9-2018
TO : ALL UNITS AND MEMBERS :
Dear Comrades,
MEDICAL INSURANCE SCHEME FOR EMPLOYEES & RETIREES
UFBU’s DISCUSSIONS WITH IBA ON 14-9-2018

” Units are aware that there was a meeting with the IBA on 8-8-2018 on the issue of medical insurance scheme wherein we had submitted various suggestions, particularly with a view to achieve a reduced premium rate especially under the retirees medical insurance policy where UIIC has proposed steep increase in the premium rates.

Based on these discussions, IBA had discussions with the United India Insurance Company and in that background, another round of meeting took place with IBA yesterday.

IBA reported on the details of the discussions they had with UIIC and the data given by UIIC to them.
Policy for In Service employees/officers:
2015-16 2016-17 2017-18
Premium paid 389 cr 769 cr 763 cr
Claims Settled 809 cr 805 cr 804 cr
Policy for Retirees (Option I – Without Domiciliary)
2016-17 2017-18
Premium paid 134 cr 203 cr
Claims Settled 175 cr 337 cr
Policy for Retirees (Option II – With Domiciliary)
2016-17 2017-18
Premium paid 149 cr 106 cr
Claims Settled 313 cr 149 cr
No. of Families covered:
2016-17 2017-18

In service employees/officers 6.46 lacs 7.14 lacs
Retirees ( Option I) 1.04 lacs 1.61 lacs
Retirees ( Option II) 89,000 38,000
Premium paid – claims reimbursed – Net Negative
(Existing employees/officers + Retirees)
2015-16 2016-17 2017-18
Premium paid 518 cr 1052 cr 1105 cr
Claims Reimbursed 1134 cr 1293 cr 1423 cr
Brokerage/TPA Charges 44 cr 71 cr 71 cr
Net Negative/Loss 660 cr 312 cr 392 cr
In view of the continued gap and imbalance between the premium paid and claims settled, UIIC had explained to IBA the need for increasing their rate of premium and had further informed IBA that if there can be some restructuring of the scheme, the premium rates also can be reviewed and revised accordingly.
In this background, IBA had sought our views and suggestions for possible modifications in the Scheme for In-Service employees/officers as well as for retirees with a view to peg down the premium rates.

After discussions, it was mutually understood by UFBU and IBA that the existing Medical Insurance Policy as per our Agreement with IBA should be continued and IBA should deal only with public sector insurance companies.
IBA also clarified that in view of Government’s advice, broker companies would not be involved in the Scheme.

Some possibilities of modification in the Scheme were discussed and IBA had also made their suggestions for our consideration. IBA has requested UFBU to submit its suggestions and views in a day or two where after the issue will be taken up by IBA with UIIC based on which the UIIC would revise their quote on premium rates.
In the meantime, at our request, IBA has agreed to advise the Banks not to go ahead with seeking options from retirees for renewal of the Policy based on the earlier offer of UIIC.
We shall keep our unions informed of further developments in this regard.
Next round of Talks: IBA informed us that the next round of Bipartite Talks with the
Negotiating Committee will be held on 29.09.2018.”
With greetings,
Yours comradely,

C.H. VENKATACHALAM GENERAL SECRETARY