Monday, September 12, 2016

Group Insurance Scheme for Retirees

We reproduce below the circular issued by AIBRF on the above subject.
 Ref: 2016/542                                      Date: 09.09.2016
The Office Bearers/ Central Committee Members/ State Body
Dear Comrades
Re: Meeting with IBA Officials on 08.09.2016
Re: Group Medical Insurance Scheme for Retirees
We called on IBA Officials at IBA office in Mumbai on 08.09.2016 and brought the following issues pertaining to the Group Medical Insurance Scheme for retirees for their consideration and solution
(a) United India Insurance Company has given one more option to the existing retirees to join the scheme by paying full year premium. Many  banks have   acted   on   the   communication of insurance company, but some are waiting
for IBA communication. IBA was requested to immediately
issue suitable communication to banks so all eligible can take benefit of it.
(b) Insurance policy is due for renewal on 31-10-2016. We
requested IBA to finalise the renewal premium with the minimum increase at the earliest so retirees can create sufficient balance in their accounts for renewal. No fresh authority should be insisted by banks for payment of renewal premium. It may be stated that overall claim ratio for all banks put together in the first year has already crossed 230 percent. In view of this some increase in premium for renewal is inevitable.
(c) Top up concept should be introduced for additional cover to those who wish to avail it and are ready to pay additional
premium on the lines of SBI Scheme. We understand that
UIICL is not averse to this idea.
(d) Issue of reimbursement of domiciliary expenses to retirees under the insurance cover should be settled without further delay. We understand IBA is in regular touch with the
insurance company for finding some acceptable solution. It was brought to our notice without implementation of clause of domiciliary expenses, claim ratio has crossed limit of 230 percent. Therefore while settling the issue of domiciliary expenses, long term viability of the scheme with affordable premium cannot be overlooked.
(e) Issuance of ID Cards to retirees need to streamlined in view of problems being faced presently.
(f) Administrative setup at the bank level and TPA level for
smooth implementation of the scheme need to be strengthened.
IBA officials assured us to take up the above issues with the
insurance company in the forthcoming meeting for their early
With Greetings,
Yours Sincerely,
( S.C.JAIN )



  1. Greetings!!!
    Can you enlighten me whether a resignee from the Bank, with qualifying period of service, but still not paid the pension, despite being a fundamental right under Art:141 of the Indian Constitution and pending cases for disposal with the Special Bench in the Supreme Court of India. Your response will be greatly appreciated.
    Thanks and regards.

  2. Is there any information regarding claim ratio in SBI?

  3. There is a clear line of difference between the bank employees in service and the retired bank employees with regard to applicability of the provisions of the Medical Insurance Scheme of IBA. For those in service, certain facilities that are not available for retirees - are available...Viz.,1) Claim can be made for self and dependents as per the definition given in the Scheme Paper while Claim can be made for self and spouse only in case of retirees. 2) Domiciliary treatment is allowed for the employees in service while it is denied to the retirees who deserve it most because of age factor. 3) Burden of Premium is borne by the Bank in case of those in service while the total burden of the premium is borne by the retirees only. 4) Those in service is many times more than the number of retirees. For the above reasons, Claim Ratio has to be arrived at for the 2 categories separately and on the Ratio so arrived, renewal premium has to be decided separately for the 2 categories. Otherwise, it is a gross injustice meted out to retirees. Hence, the Unions and Associations are requested to look into the above aspects and take up the issue of renewal premium which is almost doubled now. Further, one more thing to be noted is that as per the provisions of the Scheme, the maximum rise stipulated is 18% only at the time of renewal of the policy. Now, the Insurance Co. is going much beyond it. This needs to be discussed at length and necessary action initiated to resolve the issue.
    Krishna Rao Ch P V

  4. Where does the matter stand now? In particular, have the
    issues like domiciliatory expense reimbursements and
    premiums payment for the year 2016-17? Request response.