Committee Meeting held at Mumbai on 13.10.19 to discuss issues related to proposed Group Medi Insurance Policy floated with NIACL for Bank Retirees.
Dear Comrades
RE: CORECOMMITTEE MEETING HELD IN MUMBAI ON 13.10.2019
RE: PROCEDINGS
Core Committee Meeting of AIBRF was held in Mumbai on 13.10.2019 to discuss
the issues related to group insurance policy for retirees and to consider offer
received from New India Assurance Company Limited.
2. Comprehensive and detailed deliberations took place on the above issues in which all core committee members participated. The following unanimous views emerged.
(i) The concern was expressed on further increase in premium rates by about
15 per cent by UIICL for renewal of retiree policy for 2019-2020 despite the fact that there has been substantial decrease in claim ratio for 2018-2019 compared to previous year 2017-2018. The committee was of the view that considering reduction in claim ratio there was no logic and justification in increase in premium by 15 per cent.
(ii) The committee analyzed the consequences of such unabated increase in
premium year after year by UIICL and found that large number of retirees who have limited source of income are being forced to opt of the scheme despite the need and importance of health insurance in the life of senior citizens. Last year out of 436502 retirees, only 170150 availed
UIIC policy . In terms of percentage, it comes to 38.98% and presently
almost 71% are out of coverage in the 4th year of policy. It was felt that
this trend is highly disturbing and the very purpose of introducing group
health insurance is under serious threat
.
(iii) It was also noted that majority of those who are out of the scheme have
been made ineligible to rejoin the scheme as per the terms and conditions stipulated IBA/ UIICL. For these retirees IBA scheme has become irrelevant and meaning less. It was also noted that these large
number of ineligible retirees do not have any option for health insurance
because of age factor. Most of them are
family pensioners, retirees from
sub staff etc. It was felt that these large number of retirees need some
alternate option on urgent basis.
(iv) The committee noted with concern that various suggestions given by
AIBRF to reduce the premium with continuous follow up at various levels
and efforts made by UFBU in particular by AIBEA could not bring the desired results in the matter. IBA/ UIICL remained unmoved on our suggestions.
(v) It was felt by every one in the meeting that consequence of these developments that number of renewal this year may go down further and the number of uncovered retirees may increase.
(vi) It was noted that the suggestions given by AIBRF were rejected in the
name of violations of provisions of the settlement though they were
logical and with no additional financial burden on IBA/ UIICL. It was noted
that in the past many deviations were allowed in the policy which were
not in conformity of the provisions of the settlement. Examples arereduction in room rent to Rs. 4000 in 2018-2019, not giving domiciliary benefits to retirees in first year, introducing super top policy for retirees.
Etc.
(vii) It was noted with concern that no serious voice was raised at any level
against increase in premium for domiciliary benefit to the illogical and
unimaginable level by UIICL for last 2 years resulting into death of the benefit even before the expiry of the settlement.
3. Based on the above analysis, it was unanimously felt and decided that there is
need to create ADDITIONAL WINDOW OF HEALTH INSURANCE for retirees in view
of the following
(i) 266352 retirees have been thrown out of IBA scheme and today they have
no option to join it if they so desire. All the benefits of IBA scheme or
future improvements in it have no meaning for them
(ii) Therefore it was strongly felt that there is urgent need to create another
window of health insurance comparable to IBA scheme on urgent basis to
protect interest of this group who are the most venerable among retirees.
(iii) It was felt necessary to clarify to remove the misplaced conception being
spread that new window to be considered will be Supplement to IBA
scheme and not in competition of it.
(iv) AIBRF is committed to take care of interest of not only those who are
members of IBA scheme but also of those who are out of it not by choice
but by compulsion.
(v) The AIBRF decision to consider alternate option is completely as per the
Resolution No. 01 on health insurance passed in 5th National Conference
held in Delhi.
4. After considering the above points the house examined the proposal received
from New India Assurance Company Limited and made the following observations
(i) It was found that the proposal given by New India is more less on the lines of
IBA scheme
(ii) Some dilution made in the proposal is as per the suggestions given by AIBRF
to reduce the premium.
(iii) Proposed Reduction in premium by 33 percent meets our core demand and as
per our expectations
(iv) In offer, clause to give flexibility in selecting slabs of 3 or 4 lakhs as per the
requirement and capacity meet our demand and is likely to induce many retirees to go for this policy.
(v)It was noted that our earlier experience in dealing with New India Insurance
Company in the matter of launching independent super top policy has been quite satisfactory. Because of support of New India, AIBRF could successfully introduce concept of Super Top policy 2017-2018 which IBA/UIICL were not ready to
introduce despite persistent demand from retirees. Due to this action UIICL was
also forced to introduce Super Top policy without waiting for modification in terms
of the settlement. AIBRF can take all legitimate credit for bringing concept of super top policy for retirees. AIBRF experience in settlement of claims under New India insurance policy has also been highly satisfactory.
(vi) New India ins No. 1 insurance company of the country. It belongs to public
sector.
5. Based on the above analysis the house was unanimous view that further
steps should be taken to give final shape to the proposal to take it to logical conclusion to introduce it as additional window for retirees.
6. New India has informed that some gap noticed in the proposal need to be sorted
out till then it may be treated as withdrawn. The committee decided to take
immediate steps to sort out the gap to give final shape so that it can be launched
at the earliest.
7. The Committee also considered the objections / apprehensions being spread in
social media by some individuals/ retiree organisations. The views of the committee
are as under
(i) New India may increase the premium steeply next year. This risk exists in
UIICL policy too and is grater one in view of our past experience and out of two
NIC is financially sound and reliable and better than UIICL.
(ii) New India may withdraw the scheme in future. This possibility exists in UIICL
that too in greater proportion as this company may not be in existence by next
year as per the merger plans announced by the government.
(iii) Why New India has not participated in tender process of IBA. The house was of
the view that it can not be concern of AIBRF in taking decision on the proposal.
However we understand New India did participate in the bid but because of
common quote given by them their bid was not considered by IBA.
(iv) For dealing this this type of proposal AIBRF need services of some qualified
brokers. KMD is one of the oldest broking firm in insurance sector. They have
experience of structuring and handling IBA scheme and was broker of IBA for 3
years. It was found that various apprehensions being expressed on this aspect are baseless with no logic.
8. It was noted that the proposal from New India has come very recently
and will not be able to match the dates fixed for renewal of UIICL policy.
The house was of the unanimous view that this year the existing members
who are eligible for the scheme should take action to renew UIICL policy without waiting for finalization of the scheme.
9. This year New India scheme is targeted to provide much needed window
to those retirees who are already out of the scheme and ineligible for
renewal and those who take decision to opt out of UIICL scheme due to
paying capacity constraint.
10. We shall roll out New India scheme with finality after doing fine tuning needed
with the approval of both parties in coming days.
12. The committee took special note of the continuous efforts made by AIBEA in
pursuing the retirees issues for improvement in terms of the policy and conveyed thanks to AIBEA and its leadership.
13 The committee also took note of the very harsh letters written by a retiree
organisation opposing AIBRF initiative in the matter. The committee was of
unanimous view that such outbursts were uncalled for and not warranted. AIBRF
believes in coordination and not confrontation with sister organisations. Unmindful of such remarks/observation AIBRF is committed to take necessary action for those retirees who are not part of the IBA scheme.
14. The committee also took decision to approach UFBU to take up the with IBA to
approve as additional window outside the settlement as done by IBA for super top
policy of UIICL though not part of the settlement.
13. We request all our office bearers/ central committee members/ state Body
chiefs/ affiliates/ activists to take careful note of the above decisions and do its
large circulation to remove all sort of doubts in the minds of the members so they
can appreciate the stand taken by AIBRF.
With Warm Regards,
Yours Sincerely,
S C JAIN
General Secretary
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Medical Ins. Policy: Proposal of NIA through Ins. broker firm M/s Dastur
Letter dated 12 10 2019 by CBPRO to AIBRF is reproduced below:
Dated:12.10.2019
Shri S C Jain
General Secretary,
A I B R F.
Dear Shri Jain,
M/s Dastur’s - Proposal of New India Assurance Co.
We refer to your letter dated 09.10.2019 in reply to our letter dt 7.10.2019.
1.We sent the letter dated 7.10.19 out of anguish as we felt that the development did not augur well for unified struggle of bank Retirees to realize more important issues like Pension Updation, improvement in Family Pension,100% DA neutralization etc. In our opinion, such unilateral moves create chinks and avoidable frictions among fraternal organizations undermining all our efforts to achieve unity and avoid unwarranted
embarrassment with the UFBU who are also taking up our cause.
2. You also know that we are also writing letters to IBA, UFBU and concerned ministries giving suggestions to make the Insurance Scheme affordable with substantial
subsidy and also impressing upon them to bear the entire premium load by the Banks as is being done for the serving employees.
3. We have been also personally talking to the convener of UFBU and important leaders of UFBU and whenever possible to the IBA officials requesting them to consider our proposals.
4. We are happy that in response to our request Comrade C H Venkatachalam, General Secretary AIBEA has written letters to UIIC, to GST council and also through Shri D
Raja, Hon’ble Member of Parliament to the Hon’ble Finance Minister. Other UFBU leaders also have conveyed to us that they also had taken up the matter with the IBA.
5. When we were jointly taking up the issue with all concerned suddenly you informed us about the New India Assurance Co’s proposal brokered by M/s Dastur’s which
came out of the blue did not only take us all by surprise but also adversely affected the collective decision andwisdom of all Retiree organizations who had decided not
to go for any privately arranged Insurance scheme without IBA and Banks.
6. M/s Dastur’s who were the original brokers to the UIIC had canvased for privately arranged scheme in the past also and it was wisely rejected by all of us as the IBA
scheme is a negotiated scheme as per the directions of the Government and there is always a scope to improve the scheme on the lines proposed by us sooner or later
as any negotiated scheme/settlements is always subject to improvement with hard negotiations by all concerned.
7. Attempts to find out alternative Group Medical Insurance proposal were very much discussed earlier and it was decided not to encourage the same. It was uniformly and unanimously decided to pursue with IBA and UFBU to make the group insurance scheme affordable so that every retiree gets covered. It was felt that it was not wise and advisable to have alternative insurance scheme managed by any Organization of Retirees. It has therefore surprised us to know that you all along have been holding discussions with insurance broker of which none of us had any inkling. We are not against any proposal from any insurance company even it be marketed by any broker so long as the proposal is put to IBA for its acceptance than to any of our organizations. We cannot create confusion among our members in the eleventh hour and cannot fail to keep the retirees fully informed about the differences in policies of both insurance companies and their implications on the claim settlement and redressal.
8. Mere difference in the premium amount is not enough to take an informed decision. The fine prints in regard to adverse conditions in the proposed NIA scheme and
the risk to which the Retirees are exposed by switching over to a privately managed scheme have to be explained to the retirees in full whereas no attempt has
been made in this direction either by the insurance broker or by you.
9. Though your letter says that you sent the proposal as received for consideration by IBA, UFBU and CBPRO whereas the insurance broker’s letter has already called for cheques favouring your organization A/c Insurance clearly indicating that you have already made up your mind to get the retirees out of IBA scheme and opt for supposed New India Assurance Co. scheme which will be managed by M/s Dastur's and your organisation.
10. We are also surprised to note that M/s Dastur’s are widely canvassing with the Retirees by writing letters directly to the Retirees and contacting quite a few of them without waiting for getting the supposed proposal of NIA approved by IBA.
11. We do not want to join issue with you on what your organization has to do. While you reiterate your organization’s right to make its own decision, we can only enjoin you to work in tandem with other Retiree Organizations as unity matters most in these trying times
if we have to realize our long pending demands.
With Regards,
Yours Comradely,
K V Acharya.
Joint Convenor, CBPRO
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