Medical Insurance For Bank Employees

Shri Sanjeev K. Bandlish,
Convenor,
UFBU

Dear Sir,

Hope, you well understand, appreciate and agree with followings:

1. During last two Mediclaim Insurance renewal occasions (2017 & 2018) large number of Pensioners, mostly of sub staff cadre and pre-2005 retirees, opt out from health insurance cover, due to unprecedented steep rise of premium cost. Now in Oct, 2019, fairly good number of existing mediclaim insurance cover holders are expected to further drop out due to unaffordable premium, as it shall rise further.

2. This scenario is not good in an unionised sector, like banking system where all wages and service conditions are settled through bilateral processes. Instead it depicts of rottenness of machinery in place. Unfortunately, UFBU is a part of machinery.

3. Before this scheme, which UFBU brokered, all banks were having some health security arrangement for retired personnel at their cost, as welfare measure from their Welfare Fund. Thus, a minimum health security was in place in Banks for retirees. However, your brokered Scheme was swapped in new one. In doing so,  Bankers saved crores, which they were incurring on Bank level Scheme as welfare measure. Cost of New Scheme has been totally shifted on retirees.

It's dismaying & make one fail to understand as in what considerations, UFBU brokered this deal, where bankers could save crores to their coffers and retirees have to bear multiple crores from their meagre Pension? The scheme was introduced with great pomp and show, as most economical and advantageous, while in effect it has been found as trap (i) to telinquish Banks monetary obligations, (ii) to impose financial burden on pensioners on this count & (iii) to drive out pensioners from health security net. Look to last 3 premiums of 2016, 2017 & 2018 jump and drop out figures. Hope, you have nothing to substantiate your claim that you made about this scheme being most economical and advantageous.

4. One more profitable venture, the IBA brokered by giving mediclaim insurance business of pensioners' to Insurer. The IBA finalized a medical insurance for in-service banking personnel with the same Insurer. Since in service personnel meficlaim policy premiums are being borne by Banks, this was bargained on the strength of mediclaim insurance scheme of pensioners.

The IBA harvested well and reaped best benefits, one by abbrogating old health schemes, saving crows, (cost of which was borne by Banks) and second by bargaining cheapest mediclaim insurance policy for in service personnel by offering additional business of pensioners. Simple question: otherwise what was interest of UFBU-IBA? It was a total loss proposition to Pensioners, which you brokered, of course not without extraneous considerations!

5. Now to funny part of Welfare Fund spending. As per govt directive, Welfare Funds are to spent equally on retirees welfare as well in kind of welfare measures and not in cash. Workmen & Officers Unions representatives are on Welfare Committees, which formulate the welfare schemes. Are you aware of any scheme through which due benefits of Welfare Funds are passed on to retirees? If any in any bank, it may be exception! Well paid executives, officers, clerks, subordinates are below poverty line people. They need, free or subsidized, tea, coffee, snacks, lunch, news paper, petrol, scholarship etc. It's right from CMD to PTCs getting bonanza, though they get best pay & perks as per your statement. Banks were only doing something for health security of retirees, but that you enabled them to withdraw.

Please look into Welfare Schemes and ascertain the ground positions. Who are in econonically disadvantagius position? In-service people, who get full wages & benefits duly updated periodically or pensioners, whose pension has never been updated ever since introduced in 1986? Whose need is greater, whether of fully paid and well covered in-service people or pensioners who get nothing else, except pension? Just make a faithful appraisal by rising above your personal interests. Do they, your constituents, really look in good esteem on these shady deals and shoddy behavior to financially oppressed their own pensioner fraternity?

6. You acclaim, Bank Pension Scheme as your great achievement to ameliorate the post retirement life of lakhs of pensioners. Undoubtedly, it's true. You further acclaim, it's part of service conditions. Undoubtedly it's true as well. In this back drop, land mark question is as to why pension updating has always been side tracked, while wages were revised after every five year, particularly when Pension is an integral part of service conditions?

If it happened on fund reason, it's totally untenable and a hoax. Banks were, in past, many times in financial difficulties, but wages and service conditions were revised. Even today, banks are in perpetual red, but you are talking about wage region and improvement in service conditions. From Bankers offer is substantial in given situations, as you say. So, if for wage revision financial difficulty is not a point, how it can be held as valid reason in pension revision matter? Leave it, Pension Regulations, 1995 is a subordinate legislation. It carries terms & conditions. As far funding is concerned, it's resources are well defined in Regulations, 1995. It was and is a quid-pro-quo deal. Pensioners had made their part of fundings. How bankers can escape from their onus of contributing to Pension Fund? So far periodical updating, as condition, is concerned, Pension Agreement, 1993, bears a testimony to fact that all terms and conditions including updating would be as per RBI pension Scheme. Where is point of doubt in this regard? RBI Pension stands updated. One need not to say or argue on that pension was not one time fixation, since it is derived from central govt. Pension Rules & RBI Pension Scheme.

7. Pensioners plights are no way ordinary one. They need minimum health cover free of cost, as existed earlier. A minimum health guarantee please be ensured.

Secondly, it is better than never that Pension/ family pension updating is taken as primary task. In furtherance of Joint Notes dated 25.5.2019, it must move forward to conclusion.

It looks very strange that your constituents are boycotting talks on fractured mandate in officers wage revision, but you all are silent on fractured mandate on wages, pension, service conditions mandate.

If Pension is an integral part of service conditions and amounts to bilateral issue, how talks can be held only on wage revision mandate?

Pension revision is always listed in Charter of Demands. Simply this doesn't make your bonafide clear and above board. IBA has had repeatedly made it clear to one and all that it works on mandate it gets from it's member banks and presently they have mandate for wage revision of award staff & officers up to scale-3 only. You have so far not disclosed your view in regard to 'no mandate' for pension revision. What's your strategy? AIBOC, NOBO went on strike/Dharana on fractured mandate on wage revision of officers up to scale-3. You all are silent on 'no pension revision mandate'. Why do you want to keep pensioners in darkness and don't flash light on this contentious issue of pensioners' fraternity?

In all probabilities, I know, it's not going to evoke any positive consideration or response. But, we write you, being at helm of affairs. You are, because it were pensioners who made their best contributions in their working time to make powerful trade union movement in banking. Pensioner fraternity is one who laid the foundation of Pension Scheme. It is decaying, therefore, it's your duty to preserve it's life and identity. Scheme must be restored it's glitter, irrespective of difficulties and handicaps.

Hope, this letter is taken in right earnest and minimum health security at banks' cost and pension updating is done with ensuing wage revision.

Greetings,

(J. N. Shukla)
PRAYAGRAJ
9559748834/ 26.6.2019

( No doubt, it's lengthy, but comprehensive. Please read and if find useful, please forward as much as possible. Please do not be just passive onlooker. Please exert & react in all possible manner)