Brilliant Proposal For Improving Medical Insurance

Shri Narendra Modi,
Hon'ble Prime Minister,
Govt of India,
New Delhi

Hon'ble Sir,

Bank Pensioners problems are mounting day by day. In last 3 years, their Mediclaim premium went up by 400%. 70% pensioners could afford it, so they have no health support.

We have written a mail to Sister Nirmala Sitaraman, Hon'ble Finance Minister in this regard. We forward the said mail to you for your kind consideration and necessary relief.

Respectful Regards,


( J. N. Shukla)
National Convenor,
FBPA
Prayagraj

4.10.2019

ENCL:

Sister Nirmala Sitharaman,
Hon'ble Finance Minister,
GOI, New Delhi

Respected Sister,

Bank Retirees health wise are not secured by their respective banks, though there is clear guide line from DFS to secure their health from Welfare Funds.

Sister, we seek your very personal favour and request you to please inquire with the DFS as to what are ground reality of their direction, as to whether Welfare Funds are being utilized in fair manner and retirees are getting due advantage at par with working people as envisaged in the directive?

We beg to say,  all banks had some health scheme for their retirees till 2015, at Bank cost, but the same had been replaced by a Mediclaim Insurance Scheme at retirees cost. In last three years, premium went up from Rs.6500 to Rs.24000 for 3 lakh insurance.

It amounts to 400% rise, rendered unaffordable with result that 70% pensioners could not pay premium. Despite this, Banks have not cared to subsidize any amount in premium to ease unaffordability.

Sister, we seek your kind favor to find out some solution and request you to please consider a standing policy to end adhocism in this regard. We request followings:

1. Minimum health insurance cover of Rs.300,000/- may please be provided by Banks to retirees & their spouse. Cost be borne from Welfare Funds. Above 3 lakh, premium may be borne by retirees.

2. There should be a  single Policy to cover in-service and retirees. At present, Banks are taking two policies, one for in- service and other for retirees. Retirees, being above 60, are prone to more health risk that causes unprecedented rise in claim ratio, a factor that is considered to work out future premium. Single policy shall dilute claim ratio in significant way.

3. GST on Premium amount is 18%, may please be abolished. Why? Because:
(a) All expenses incurred under claim are subject to GST application. (b) It will promote more health insurance business. (c) More health Insurance business means more claim and more GST. Being health related policy, govt must not charge GST on it.

4. Chain hospitals & TPA must be abolished. They are great source of corruption and pilferages. Banks should play the part of TPA. It will eliminate TPA brokerage/cost. Retirees should be free to take treatment in any hospital of his choice. His designated Branch may advance up to 75% of estimated cost to hospital, pending final settlement of claim. This will break the monopoly of designated chain hospitals and TPA nexus. In existing set up, all hospitals have fixed Room charges high, incur/show maximum expenditure etc. Pension paying branch may settle the claim as per norms. If TPA claim settlements are  honored by Insurance Co. then there shouldn't be any problem to Banks if they settle the claims.

We look forward to your kind consideration and exploring and considering all possibilities to secure the health of over 5 lakh aging, ailing and dying Bank Pensioners under extreme financial difficulty.

With best Regards,


(J. N. Shukla)
National Convenor,
FORUM OF BANK PENSIONER ACTIVISTS
Prayagraj
4.10.2019
9559748834/jagat.n.shukla@gmail.com

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Shri V.G.Kannada,
Chief Executive,
Indian Banks' Association,
Cuffe Parade
Mumbai

Dear Sir,

We have to invite your kind attention to DFS letter regarding use of Welfare Funds by PS Bank. The guide lines, there is among other things, states to spend welfare funds equally on retirees as well. It can be spent to provide medical security. Before Mediclaim Insurance Policy came into being, all banks have had some health security policy for retirees based on Welfare Funds, which had been replaced by a new policy, cost of which being borne by retirees thereunder. This way, Banks had been freed from their any health obligation of retirees which is in contravention of prevalent  earlier policy & procedure.

The new Mediclaim Insurance Scheme was introduced on very tall claim of abundant benefits at a premium of about Rs.6500/- for Rs.3 lakh. Now, in 2019 this premium is at over Rs.24000/-, some steep rise of 400%. As a result, over 70% retirees could not take the policy due to unaffordable premium. This fall out have not been viewed by IBA for the reasons best known to you. Had it been the motive of IBA, then it's very celebrating development, but if not it, let us agree, in it failed a mega policy to secure the health of Bank retirees. Hope, you take it as a great policy failure, prejudicial to declared objectives.

It is indeed very sordid state of affair at Bankers' Premier Institution level, to bundle out such important problem related to aging, ailing and dying generation of 5 lakh Bank Pensioners  and offer the same rotten policy with further increase in Premiums. Sorry, this unmasks the inhuman face of IBA towards former employees and officers who dedicated their life to bring PSBs to present gigantic height. Hope, it's very ashaming development in Banking where time tested strong bond of bilaterism exists for over six decades.

Issue in question needed better application of mind than the quantum of wealth, as has been held by you. You can't deny or turn your back from the health obligations towards retirees. Further, given the guide lines of DFS with regard to Welfare Funds coverage, you can't deny the equal right of retirees in Welfare Funds. Further, you are well aware as to almost nil amount is being spent on retirees and wherever it is, they are treated as second rank citizen not the senior one. It's most humiliating situation which ashamed the whole banking fraternity, banking system and the government as well which owns these PSBs and in a welfare State, government is ought to be model employer. We don't know what's your opinion in this regard, but our view is very clear that IBA turned itself as Shylock, it's poching the flesh of in-service people and even the retirees at greater scale.

Yes, better application of mind would have averted this situation and brought more welfare and happiness had it been adhered to by IBA and Operating Unions. Hope, you allow us to submit followings for your consideration:

1. Minimum health insurance cover of Rs.300,000/- may please be provided by Banks to retirees & their spouse. Cost be borne from Welfare Funds. Above 3 lakh, premium may be borne by retirees.

2. There should be a  single Policy to cover in-service and retirees. At present, Banks are taking two policies, one for in- service and other for retirees. Retirees, being above 60, are prone to more health risk that causes unprecedented rise in claim ratio, a factor that is considered to work out future premium. Single policy shall dilute claim ratio in significant way.

3. GST on Premium amount is 18%, may please be abolished. Why? Because:
(a) All expenses incurred under claim are subject to GST application. (b) It will promote more health insurance business. (c) More health Insurance business means more claim and more GST. Being health related policy, govt must not charge GST on it.

4. Chain hospitals & TPA must be abolished. They are great source of corruption and pilferages. Banks should play the part of TPA. It will eliminate TPA brokerage/cost. Retirees should be free to take treatment in any hospital of their choice. Their designated Branch may advance up to 75% of estimated cost to hospital, pending final settlement of claim. This will break the monopoly of designated chain hospitals and TPA nexus. In existing set up, all hospitals have fixed Room charges high, incur/show maximum inflated expenditure etc. Pension paying branch may settle the claim as per norms. If TPA claim settlements are  honored by Insurance Co. then there shouldn't be any problem to Banks if they settle the claims.

We look forward to your kind consideration and exploring and considering all possibilities to secure the health of over 5 lakh aging, ailing and dying Bank Pensioners under extreme financial difficulty. Banks please be directed to bear extra premium and return to pensioners over base premium.

With best Regards,

(J. N. Shukla)
National Convenor,
FORUM OF BANK PENSIONER ACTIVISTS
Prayagraj
4.10.2019
9559748834/jagat.n.shukla@gmail.com

cc to:

1. Secretary, DFS, Finance Ministry,
    New Delhi

    - Please ascertain the fact as to how
      WFs are being used by Banks and
      which are the schemes run out of
      Welfare Funds that benefits retirees

2. Smt. Nirmala Sitharaman,
     Hon'ble Finance Minister,
     GOI, New Delhi

3. Shri Narendra Modi,
    Hon'ble Prime Minister,
    GOI, New Delhi

Apathy Must End, though very much delayed. Thousands died without justice.