Thursday, October 29, 2020

Is Medical insurance scheme a Fraud with Retirees?

 Vishwa Alok Chandra ,M.A, LL.B


Ex-Chief-Manager, Central-Bank of India                         11/3 Vikas Nagar


Mail- Chandra.valok@gmail.com  Mob-7990841956          Lucknow-226022   


 


Ref-No2020/45                                                                              28/10/2020


Hon’ble Prime-Mnister


Hon’ble Finance -Minister


Hon’ble Law & Justice Minister


Hon’ble Labour Minister  


Hon’ble Secretary Deptt of Financial Services


Govt Of India .  New-Delhi                                                                                                                                                                      


                                                                                    Most –Urgent / Serious


Respected Sirs/ Madam, 


 


Ref- Fraud  with Bank retirees by Indian Bank Association (IBA) in connivance with select Insurance co .


Ref-1, Ministry of finance, Deptt of Financial Services letter F.No14/7/92-IR


(Vol-II ) dt 24/02/2012 addressed to Deputy Chief Executive ,IBA Mumbai .


        2,   IBA letter no CIR/HR&IR/2015-16/XBPS/J/1413 dt 01/10/2015 .


 


In the a above matter , Ministry of Finance , Deptt Of Financial Services via their above noted  letter dt 24/02/2012  advised Deputy Chief Officer , IBA Mumbai “Banks may consider the option of Group Insurance Policies for both serving & retired employees  instead of direct payment of benefit from the fund “


In compliance of above instructions, IBA via their above noted letter dt


01/10/ 2015 advised all member banks , parties to bipartite settlement (in terms of joint note dated 25/05/ 2015 ) for implementation of Medical Insurance Scheme to retirees also “subject to payment of agreed Insurance Premium by them....  ..to the lead Insurer ie United India Insurance Co Ltd appointed by IBA for the purpose “


In Para 3 ,it was further stated “A separate Medi-claim Policy is respect of retirees will be issued on similar terms & conditions as is applicable to serving employees ............The Insurance Premium for retirees is also same as is for serving employees which is as under for year ,2015-16.


Category                         Insurance Cover (Rs )           Amount of Premium         


Officer-Retirees              4 Lacs                                    Rs 6573+Ser Tax


Award Staff                     3Lacs                                     Rs 4903+Ser Tax “


 


In next year 2016-17 ,it was revised for retirees for three lacs Rs15007/ & for in-service employees Rs 12334/ . In the year 2019-20 ,it was Rs 24897/for retirees & for in service employees Rs 17627 / FOR IN SERVICE EMPLOYEES FACILITY OF DOMICIARY TREATMENT WAS INCLUDED BUT NOT FOR RETIREES , PREMIUM WAS TOO HIGH ie RS 61784/-`FOR RETIREES .


 IBA , violated Ministry of finance instructions as given in above noted letter dt 24/02/2012 to bear  insurance premium for retirees by Bank and  in joint note it was noted  that retirees will pay themselves their premium .


Again ,in above noted IBA letter dt 01/10/2015 , it was stated that separate policy will be issued on similar terms and conditions but again terms were violated to  disadvantage of retirees , for retirees family definition was retirees & spouse ie two persons  but for employee , employee his/her  spouse , children &two parents (Generally senior citizens ) say six persons  


The very next year premium was more than tripled and two rates were decided one for retirees & other for in-service employees. For retirees, family of two insurance premium was substantially high than for in-service


employees consisting of 6 (approx) including two senior citizens, while for retirees it should not be more than half of in service employees if calculated on higher side .


 


It is pertinent to note that Senior-Adviser (HR&IR)  IBA in its affidavit  dt 21/10/20 ( before Hon’ble court Of Judicature at Madras ) has stated “IBA


was formed in 1946 to promote and develop sound & progressive banking principles, practices & conventions .I state that IBA is a unregistered body .......legally speaking such joint notes unlike settlement do not have any statutory force ..................IBA as mere facilitator based on the mandate and authorisation “  Submitting false affidavit is also offence of perjury & punishable u/s 193 of Indian Penal Code.


Pension of Bank retirees is not updated since last 26 years & pension of a General Manager was Rs 10650/ in Oct-2002 , while the pension of a sub staff is Rs 11893/ retired in Nov-1012 . The nexus of IBA & unions is continuously knitting evil designs to damage interests of pensioners & their terminal benefits by inventing concepts like Special-Pay not qualifying for terminal benefits like pension, PF. Gratuity & commutation while pension in Banks is not a burden on Bank/ Govt but to be paid from retirees own Pension Trust Fund . This nexus is also busy in damaging pension trust fund by way of unauthorised withdrawals/ non credit of statutory dues etc.


It is well known fact that Banks viability & profitability is badly shaken due to Non Performing Assets / Frauds amounting to laces of cores rupees due to high handedness of few senior executives but IBA& Unions are silent on the issue .They are not placing the facts before Govt Of India for the reasons best known to them but damaging the interests of retirees & in service employees in a immoral, unethical & unlawful manner. While Bank employees are performing multiple duties like banking, implementation of Govt sponsored schemes & selling insurance products, gold bond etc . No social service can earn profit, it runs on budgetary support.


Wage revision settlement (due from 01/11/2017) is not yet concluded for more than 42 months as charter of demand is submitted before six months Every delay in settlement enriches unions fund by way of arrears levy in cores of rupees, which is totally a illegal payment, if settlement is in time, there will be no arrear & no levy. Thus IBA obliges unions at the cost of employees. Wage revision deliberations are not transparent.


I have sent several mail letters to IBA chairman in his personal name but he is silent, it appears that he has nothing to offer. It is a well known fact that insurance co pays lucrative commissions for mobilising business .In case of retirees who is the beneficiary of commissions whether banks lawfully or extraneous considerations are playing its role, it is matter of investigation.


Govt of India as a matter of policy gives its senior citizens respectable, preferential & concessional treatment but why this nexus of IBA& unions


is involved in  damaging the interests of retirees in unethical, immoral & unlawful manner while most of the members of negotiation committee are senior citizens .This gives rise to doubt if they have some alternative source of income . Union funds need to be audited.  


Therefore kindly set up high level inquiry in this suspected multi –hundred cores rupees  fraud to save the life of old retirees who   are dying in absence of  proper medical treatment due to meagre pension & exorbitant medical health premium .I BA has admitted that it is a unregistered body thus having no legal status in the eyes of law , therefore its involvement in Health Insurance business  is unwanted & IBA needs to be dissolved  since  it is involved in unfair practices .If bank pays retirees premium , there will not be game of commission .Presently retirees are being cheated by different insurance co’s due to difference in premium & terms & conditions . I have also referred the matter to Insurance Regulatory &Development authority of India but their reply is awaited .


I therefore request to instruct public sector Banks to follow the instructions of Deptt of Financial Services dt 24/02.2012 as noted above to


pay the premium of retirees & protect poor pensioners from death in absence of proper medical facilities .   


With due regards


Yours Truely


Chandra.va


(Vishwa Al;ok Chandra )


Encl – Above noted circular of Ministry of finance, IBA & pension chart .


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Date: Wed, 28 Oct 2020 

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