Wednesday, August 30, 2017

Launching of Super Top Med claim Insurance Policy for bank retirees - AIBRF circular

 Circular by AIBRF is reproduced below

Ref:2017/91                                                           Date: 28.08.2017


    The office Bearers/ Central Committee Members/ State Body Chiefs

    Dear Comrades,

                         Re: Launching of Super Top Med claim Insurance
                               Policy designed by New India Assurance. Co. Ltd
                               For Bank Retirees
We request you to refer our circular no. 2017/78 dated 15.07.2017 regarding launching of Super Top Insurance Policy for bank retirees and giving details of the policy.

2. We have since finalised the procedure details of the policy  after holding discussion with the officials of New India Insurance Company/ Pragmatic Insurance Broking Pvt. Ltd. Details are given below

(a)        As advised earlier, bank retirees who have purchased insurance cover from United India Insurance Co. Ltd. Under IBA scheme and opt for renewal for 2017-2018 will be eligible to apply for this Super Top Policy.
(b)        Sum Insured under this scheme will be Rs. 3 lakhs for award staff and Rs. 4 lakhs for officer staff.
(c)        Annual Premium will be as under
For Rs 3 lakhs       Rs 3511 ( inclusive of GST )
For Rs. 4 lakhs      Rs.3806 ( inclusive of GST)
(d)        This policy will be effective from 1st November 2017 to 31st October, 2018.
(e)        Complete details of the scheme is given in the form of  enclosed FAQ ( Frequently Asked Questions).
(f)         Those who desire to buy this Super Top Policy should submit the request in the enclosed proposal form duly filled in.
(g)        All columns should be properly filled. Coloured photo of the self and spouse should be pasted in the given space in the proposal form.
(h)        The following documents should accompany the proposal form(i) one additional photo of  self and spouse & (ii) Copy of health card of United India Insurance Company- Self & Spouse.
(i)         Cheque should be in favour of “ AIBRF New India Super Top up Policy”
(j)         Cheques along with proposal form should be sent at the following address by Speed Post on individual basis or by after activists after collecting from members in one packet:
            Pragmatic Insurance broking Services Pvt. Limited  
            202, Sunshine Avenue, opp. Balaji Traders
            Near Datta Mandir Chowk  Viman Nagar
            Pune- 411014
            Contact Person Cap. Sanjay Moholkar
                                         Mobile No.7738894698
        E-Mail Address:

(k)        On receipt of the cheques, acknowledgement will be sent by SMS to the concerned retiree.
(l)         The following details should be written on the back of the cheques(i) Name of the applicant (ii) Mobile No. (iii) Health Card number of United India Insurance Co.
(m)      The cheques will be encashed only after receipt of targeted number of applications within the stipulated period. In the unlikely event of not achieving the target, the cheques will be returned to the applicants.
(n)        After encashment of cheques and the policy becoming active, health card for Super Top policy will be uploaded on the web site of the insurance company from where members can download and keep on record. In the event of any problem in this regard, you may contact (i) on above address of the insurance broking firm (ii) Central office of AIBRF or (iii) Pune Office of AIBRF- Contact No 9823853653
(o)        Insurance Company will upload names of TPAs ( They will be identical to base policy of United India Insurance Co.), names of network hospitals, format of claim forms for the use of members in case of need shortly.
(p)        Insurance Company/ Broking firm will establish Help Desk for after sale service to the policyholders under the scheme. Details will be advised shortly.  


As advised in our earlier circular, We have been feeling  that some reliable option at reasonable and affordable cost  should be available to the retirees for buying super top up insurance policy in addition to the basic policy of United India Insurance Co.  introduced by IBA in 2015 to meet growing expenses on medical treatment and to avoid risk of not getting additional cover at the later stage in view of advancing age. We made multiple efforts in this regard  by contacting IBA and Unions for introduction of super top up scheme for retirees. We were of the view that bank managements can service such product effectively.  But when no response was coming for long time despite our continuous follow up, we took initiative to launch independent insurance scheme for additional cover. Basically our efforts in this direction  are with the object  to ensure welfare of our members.  


After announcing Super Top up policy of New India  by AIBRF in July 2017, insurance broking firm , K.M. Dastur & CO.  circulated proposal for Super Top policy more or less on similar  terms and conditions with higher cover of Rs. 1 lakh for both the categories. Thereafter we have been receiving several quarries from members that why retirees should not go for K.M. Dastur proposal where higher cover is available or why AIBRF should not persuade New India to enhance cover on the lines of Dastur proposal. In this connection we have to bring following facts for your consideration to enable you to take decision on Super Top policy.

(a)        We find that communication of K.M. Dastur  addressed to Unions and circulated by mail is merely proposal of the broking firm at least as on today. Super Top policy as per the proposal of K.M Dastur  is not readily available today even if somebody wants to opt for it unlike New India scheme which has already been  launched  and retiree can formally apply for it. In our  view, it would not be proper to talk discuss and compare which is not available.
(b)        After circulation of the proposal by K.M Dastur, we wrote to UFBU to ascertain whether they will support it for approval by IBA. There is no formal response to our communication in the matter from UFBU yet. However we understand informally that it is not being not pursued.
(c)        We have contacted IBA officials to ascertain the position from them. We understand that it is not under their active consideration. We have also checked from managements of 3/4  banks who have informally advised that they would launch the scheme only if it is approved by IBA.
(d)        In view of the above facts, there is no certainty that K.M. Dastur proposal would become reality in near future/ within the stipulated time.
(e)        As all of you know,  experience of retirees with K.M. Dastur in handling domiciliary expenses issue during 2015-16 has not been satisfactory.
(f)         We find that United India Insurance Company for renewal of medi-claim policy of Rs 8 lakhs meant for SBI retirees is charging premium of around Rs. 42000 for the year 2017 against total cost in our case for Rs. 8 lakhs will be in the region of Rs 20000 to 21500.
(g)        We have discussed K.M. Dastur proposal with New India Officials with the request to review terms and conditions of their scheme. However they have expressed their inability to do so at this stage as they feel that the premium quoted by them is very reasonable considering attractive terms and conditions offered and high claim ratio in basic policy. They have pointed out that otherwise also medi-claim business is
  not profitable for insurance sector and their policy is to ensure stability in premium in future instead of giving concession in first year and then heavy increase in  premium in subsequent years.

5. Considering the above we feel it is reasonable proposal for those who want to go for super top policy. Our affiliates and members are requested to consider the above facts and take informed decision.

6.  We have since been informed by the following affiliates the number of retirees who have expressed their interest in Super Top policy of New India

1.   Canara Bank Retirees Ass.                                   1886 Retirees
2.   Allahabad Bank Retirees Ass.                              1240 Retirees
3.   Bank of India Retirees Ass.                                 2100  Retirees

7. Other affiliates are requested to take effective steps to implement the scheme and advise the figures of interested members at the earliest.

                   With Regards,
                                                                           Yours Sincerely,

                                                                       ( S.C.JAIN)
                                                                GENERAL SECRETARY


Wednesday, August 9, 2017


Text of CBPRO Circular No. 011/2017 dated 03.08.2017

Dear Comrades,


We have been posting you with the developments and various efforts put in by CBPRO and its constituents in  regard to the following major outstanding issues concerning the pensioners and retirees:
1. 100% DA neutralization to pre 2002 retirees;
2. Improvement in family pension;
3. Pension updation
4. Improvement in medical insurance policy/medical benefit scheme for retirees;
5. Second option to left out compulsorily retired officers;
6. Second option to resignees who have put in pensionable service;

We are happy to note that due to our persistent follow up and interactions with the UFBU, they have taken up the issues mentioned in the record note of the last Bi-partite settlement during their ongoing negotiations for the 11th Bipartite Settlement. We are in constant touch with the Convenor of the UFBU and the leaders of the constituents of the UBFU. During their meeting with the Chairman of the Sub- Committee of IBA In-charge of negotiation on 1st August 2017, they have taken up the matter of 100% DA neutralization and family pension and have got a positive response from the Chairman of the sub- committee in resolving the above issues. We hope that the issues contained in the record note will be sorted out on a priority basis before the conclusion of the ensuing Bipartite Settlement as the record note is the product of last settlement.
Meanwhile we have been pursuing all the major issues concerning the retirees cited above with the
Government and the IBA by writing to them and also by meeting them. After our meeting with Shri Arun Jaitleyji, Honourable Finance Minister on 1st June 2017, we are enthused by his response to us while discussing our issues. We explained to him the details about 100% DA neutralization issue, family pension and updation. By all means it was not a meeting for merely submitting a memorandum but a meeting where he heard our issues patiently asking us to clarify points in respect of the issues.

As a further follow up we met Shri Santosh Kumar Gangwarji, Honourable Minister of State for Finance on 24th July 2017 and further explained to him about our meeting with the Honourable Finance Minister and also urged him to advise his Ministry to initiate steps to resolve the issues on an urgent note as quite a lot of retirees are in their advanced age of life. The Honourable Minister was very sympathetic and assured us of the resolution of the pending matters. He also informed us that he had already talked to the Ministry officials in this regard and assured of reminding them further.

In between the meetings we had with the Honourable Finance Minister and Honourable Minister of State for Finance, we were also pursuing the issues on a continuous basis with the top Ministry officials in the Department of Financial Services, Ministry of Finance. We have given a detailed note on 17th July 2017 in respect of all the above issues and also submitted a chart with approximate calculations in regard to each of the above issues. We have also mentioned in our note that the cost implications are not going to affect the profitability of the Banks as the payments have to be made out of Pension Funds which are adequate to meet the cost of improvements.
We are happy to inform you that consequent to our meetings with the Honourable Ministers, followed by meetings and discussions with the top Ministry officials, a committee has been constituted in the Department of Financial Services, Ministry of Finance to resolve the pending issues of Bank pensioners and retirees. We are hopeful of a favourable outcome in regard to the  issues very shortly.
We firmly believe that the issues like Pension Updation, Family Pension, Medical Benefit Scheme etc. shall be of direct concern to the serving employees as well in the years to come on their retirement. It is imperative that the UBFU and CBPRO enhance their combined efforts for  resolution of the pending issues. We are happy that all the constituents and leaders of UFBU are making sincere efforts in this regard.
Comrades, we do understand the anxiety of all concerned as the issues did not get encouraging response from any of the authorities earlier. Nevertheless we did not allow our determination to diminish for clinching the issues. The developments during the last couple of months tend to give us confidence that as a result of our efforts with Ministry and IBA and also the initiatives taken by UFBU we are inching towards a satisfactory solution to the issues raised by us. We will further step up the momentum of our efforts with the Ministry and IBA and also scale up the level of our interaction with UFBU leaders so as to ensure early success.
With regards,
Yours comradely
Sd/- Sd/-


Thursday, August 3, 2017

100% D.A. Neutralization in Pre-November 2002 Retirees’ case Judgment in Hon’ble Supreme Court reserved

A circular on the above subject, issued by CBPRO is reproduced below.
All the General Secretaries of the Constituents of CBPRO.

As you are aware the above case is pending before the Hon’ble Supreme Court of India. After few adjournments, it came up for arguments today for disposal. The Senior Advocates of all the parties were heard at length. The arguments by the lawyers representing the Retirees’ Organizations were very well received. Our presence in the Court helped an excellent coordination among the Senior Advocates who represented the Retirees’ Organizations. The Senior Advocate who represented the Bank Management argued vehemently that there was no discrimination as the employer has a right to restrict the applicability of new benefits/ improvements to the future Retirees and for that purpose the
cut-off date in this case being 01.11.2002 was in order. He also argued that making the 100% D.A. neutralization applicable to all past Retirees would involve huge financial burden. His argument was that the quantum of amount mutually agreed at the time of signing the settlement as a load factor to be distributed among various components of pay like Basic pay, D.A., HRA, Medical, other
allowances, etc. was a limiting factor which was agreed to by all the Unions representing the Employees and Officers. Hence, it could not be questioned at this stage. These arguments were effectively countered by the Senior Advocates who represented various Organizations of Retirees.
Shri V.K. Bali, Senior Advocate (Former Chief Justice of Kerala High Court and Former Chairman of Central Administrative Tribunal), who represented AIBRF, argued the case excellently. His arguments were able to impress the Court about the distinctions made out in Para2(b) of the Bipartite Settlement of May, 2005 in respect of applicability of uniform rate of D.A. and the distortions in its
implementations vide IBA Circular dated 28.06.2005 going against the spirit of the Bipartite Settlement. The clauses relating to payment of uniform D.A. from May, 2005 in the Bipartite Settlement and Joint note did not stipulate any cut-off date with regard to exclusion of Pre-November 2002 Retirees from the applicability of 100% D.A. rather it only mentioned about the change in the
D.A. formula to 100% D.A. neutralization from 2005. IBA while issuing the circular to the Member Banks unilaterally created artificial classification by wrongly dividing the Retirees into different groups as Pre-01.11.2002 Retirees and post 01.11.2002 Retirees. It was sought to be questioned in the Court by the Senior Advocates representing the Retirees Organizations. The distortion caused by IBA Circular was well explained to the Hon’ble Supreme Court. Shri Jitendra Sharma, Senior Advocate,
representing the Petitioners namely United Bank of India Retirees’ Welfare Association strongly supplemented the arguments of Shri Bali while also highlighting the clause 6 of Pension Settlement of 1993. 
Shri A.S. Nambiar, renowned Senior Advocate who represented the ARISE, an affiliate of AIBPARC made very valid points invoking Article 14 of the Constitution of India. He also argued about the absence of justification and rationale objectives with regard to Artificial Classification made by IBA Circular based on the date of retirement of the Pensioners. He effectively highlighted the ratio
laid down in the case of D.S.Nakara. He also pointed out that the inflation equally hurts all the Pensioners irrespective of their date of Retirement. D.A. is payable towards part compensation on account of price-rise and hence there cannot be different rate of D.A. payable to the Retirees merely on the basis of their date of retirement. Mr.Nambiar was ably assisted by Mr. Sewa Ram,
Advocate(Former IOBian). Mr.Sewa Ram also argued that the Pension Options were exercised by the Employees in 1993-94 on the basis of the Pension settlement even before the Pension Regulations were finalized on 29.09.1995. He also argued that IBA’s letter dated 17.12.1993 to Sri R.N. Godbole the then General Secretary of AIBOC clearly stated that the Pension Regulations will be finalized on the lines of Pension rules of the Central Government and the Reserve Bank of India. The argument of the Management Lawyer about the Pension fund being contributory was well countered by him on the grounds that it is a revenue expenditure which has to be fully met by the Bank in accordance with the actuaries investigation. He also supplemented the arguments of Mr.Nambiar. Mr.Sewa Ram also actively coordinated the mutual consultations amongst the Senior Advocates so as to ensure
effective and fruitful arguments before the Hon’ble Supreme Court.
Mrs. V. Mohana, Senior Advocate, representing RBONC (Constituent of CBPRO) advanced  arguments about discrimination caused by IBA’s Circular dated 28.06.2005 despite there being no such clause in the Bipartite Settlement or Joint Note. She also made a point that the judgment in the case should apply to all the affected Bank Pensioners. She also made a point that the Management’s
argument about huge financial burden on account of 100% D.A. Neutralization was without any substance or justification and the number of pre-2002 Retirees is small in number as compared to the large number of Pensioners who have retired after November, 2002.
The arguments in the case started at 10:30 AM and concluded at 03.00 PM. After hearing the arguments of the parties, the Hon’ble Court sought some clarifications in the light of the earlier case of 100% D.A. neutralization having been dismissed by the Hon’ble Supreme Court. The Judges sought the views of the Advocates representing the Pensioners’ and Retirees’ Organizations
about their earlier judgment relating to dismissal of appeals against the Order of Hon’ble High Court of Madras and implications thereof. The Senior Advocates expressed their views in response to the queries raised by the Hon’ble Court. In view of very sound  and valid Constitutional points raised by the Senior Advocates representing the Pensioners’ and Retirees’ Organizations, the Hon’ble Court reserved the judgment. We hope for a favourable verdict in the matter. We also hope that the initiative on the part of the Delhi based Leaders of Pensioners’ and Retirees’ Organizations in ensuring excellent coordination amongst the Senior Advocates shall go a long way in further strengthening the Bank Retirees’ Movement.
With Regards,
Yours Comradely.
A.Ramesh Babu     K.V. Acharya
Joint Conveners