United India Insurance Company Super Top-up Policy for Bank Retirees - CBPRO circular

Circular issued by CBPRO is reproduced below

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Circular 015/2017                                                             Dated 31.08.2017

Dear Comrades

Sub: United India Insurance Company Super Top-up Policy for Bank Retirees

We are pleased to advise our Bank Retiree Comrades that after detailed discussions the United India Insurance Company, who have  presently given the basic Mediclaim Insurance Policy to the Bank Pensioners and Retirees consequent to 10^th Bipartite Settlement which was concluded in 2015,  have now offered a Super Top-up Policy over and above the Basic Mediclaim Policy.

The salient features of the offer from the United India Insurance Company are as under:

1.    The Basic Policy for Award staff and Supervisory staff is Rs. 300,000 and Rs. 400,000 respectively.

2.    The Super Top-up Policy for Award staff and Supervisory staff will be Rs. 400,000 and Rs. 500,000 respectively.

3.    The eligibility for domiciliary treatment shall be 10% of the Basic Policy only.

4.    There shall not be any domiciliary treatment reimbursement under the Super Top-up Policy.

5.    The Super Top-up Policy will be operative from 1^st November, 2017 coinciding with the renewal of the present Mediclaim Policy.

6.    The Premium on the Basic policy and Super Top-up Policy is payable by the concerned Pensioner/Retiree/ Insurer.

7.    The Insurance Premium payable on the Super Top-up Policy is as under:

a.    For Rs. 400,000 Super Top-up Policy the premium shall be Rs. 2,975 plus GST.

b.    For Rs. 500,000 Super Top-up Policy the premium shall be Rs. 3,225 plus GST.

We are expecting a communication from the IBA very shortly.  However we have received communication from M/s K M Dastur Reinsurance Brokers Pvt. Ltd giving details of the offer of United India Insurance Company which we are reproducing hereunder.  They have also written to the Member Banks of IBA of their offer which has been forwarded to us by them.  We request our comrades to go through the contents carefully and decide about their option.

We have come across another kind of Super Top-up Policy offered by New India Assurance Company Ltd. retaining the Basic Policy of United India Insurance Company.  At the outset we do not want to get into any competition in regard to the offers of two Public Sector Insurance Companies.  We also do not want to make any comments about the efficiency or otherwise of the United India Insurance Company or the promised efficiency of service from the New India Assurance Company Ltd. as the scope for grievances is always there in any kind of arrangement.

As a responsible Organisation we will only strive to give higher coverage of Super Top-up Policy as offered by United India Insurance Company and especially when the premium for the Super Top-up Policy is almost the same as offered by New India Assurance Company Ltd. excepting that the Super Top-up Policy by United India Insurance Company is for the higher amount i.e.  Rs.400,000 and Rs. 500,000.

We are also of the opinion that it is better to have the Super Top-up policy form United India Insurance Company with whom we are having the basic policy for better administration and settlement of claims.  Additionally United India Insurance Company has been part of the Mediclaim Insurance Policy floated by the IBA during the 10^th Bipartite Settlement which is known as IBA’s Retirees Policy.

We urge upon our members not to unduly hurry up in regard to the option of Top-up policy as the renewal is due from November 2017 only and further detailed communication is likely to come from IBA in a matter of few days.  The IBA has already advised about the renewal of the Mediclaim Policy and the premium for the serving employees and officers which is due from 1^st October, 2017.  There is no need to go for option right now and no need to panic as there is sufficient time to give our options to a much better and higher offer from the United India Insurance Company with whom we are having the basic policy.

We request our comrades to wait for our further communications in this matter.

With regards,

Yours Comradely,

         

 A.Ramesh Babu                        K.V.Acharya

           

               Joint Conveners

The exact contents of the mail received by us from K M Dastur Reinsurance Brokers Pvt Ltd. on 31.08.2017

Thank you for your mail.

We have got  a sanction from United India Insurance Co. Ltd., for the Super Top Up Policy as informed to all the Banks, the Union Associations and IBA. We have informed to IBA and they are happy about the proposal. We are marking a copy of this mail to IBA and United India Insurance Co. Ltd.

In the policy confirmed by United India Insurance Co Ltd.

1.    The extra coverage under the Super Top Up Policy is Rs. 100,000 more than the one proposed by New India Assurance Co Ltd.

2.    This Super Top-up Policy will be seamless and can be availed by the Retirees with the basic policy just by informing their Bank at the time of the renewal of the basic policy as of 1^st November 2017 to debit the extra premium payable on the Super Top Up Policy.

3.    The claim process too will be seamless as the same TPA will be settling the claim and all the Retirees would have to do is to inform the TPA of the Super Top Up Policy number too when a claim is lodged.

4.    The TPA will be the same.

5.    There is no minimum number of Retirees essential for the policy to commence, hence the Retirees are ensured of the coverage the moment they apply for the same together with their basic policy.

6.    There is a mention of SBI policy through United, where we are not involved. It is being done by Ms. Anand Rathi Insurance Brokers Pvt. Ltd. and they have no connection with us in any matter.

7.    We at K M Dastur have worked on structuring this IBA  policy for three and a half years and are happy to inform that we were also involved in drafting the medical portion of the 10^th Bipartite Settlement and our name is mentioned in the Mapping of the Medical Scheme under the same. We are also members for the claim rejection committee and with this experience we assure you of a better implementation of the IBA Medical Scheme in the days to come.

We give you the details of the Super Top Up Policy as below:

Pleased to inform that after protracted negotiation with United India Insurance Co. Ltd they have agreed to offer Super Top Up Policy to the IBA retirees.

Please note that domiciliary claims will not be paid by the Super Top Up Cover.

How does the Super Top Up work.

Super Top Up Policy will be in addition to the limit of the basic IBA Policy.

To illustrate below our claim example:

For a 3 lakh basic IBA Policy, the Super Top Up Policy is for a Sum Insured of Rs. 400,000.

If there is a claim up to 3 lakhs there would be no claim under the Super Top Up Policy.

In case there is claim for 6 lakhs then 3 lakh would be paid from the basic policy and another 3 lakh from the 4 lakh Super Top Up Policy.

If there is a further claim within the same year and the basic IBA policy is exhausted the balance will be paid from the Super Top Up Policy.

Similarly, For a 4 lakh basic IBA Policy, the Super Top Up Policy is for a Sum Insured of Rs. 500,000.

The Rs. 3 lakh basic Policy becomes Rs. 700,000 after the Super Top Up Extension. (Basic Sum Insured Rs. 3 lakhs + Super Top Up Sum Insured Rs. 4 lakhs = Rs. 700,000)

Similarly the Rs. 4 Lakh basic Policy becomes Rs. 900,000 after the Super Top Up Extension. (Basic Sum Insured Rs. 4 lakhs + Super Top Up Sum Insured Rs. 5 lakhs = Rs. 900,000)

Sum Insured’s of the two New Super Top Up Policies		Threshold i.e. the Sum Insured under the main Policy after which the Super Top Up Policy will trigger	Premium excluding GST
	Rs.	Rs.	Rs.
1	4,00,000	3,00,000	2,975
2	5,00,000	4,00,000	3,225

If you need any further clarifications please do contact us

Best Regards,

Maneck H Dastur

K. M. Dastur Reinsurance Brokers Pvt. Ltd.

                                                              

On seeking our clarification from K M Dastur Reinsurance Brokers Pvt Ltd on utilisation of TOP-up Policy they responded as:

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“We refer to the telephonic discussion with Mr. Acharya and confirm that if the claim is of Rs. 3 Lakhs under the 3 lakh policy then the claim would be totally paid by the basic 3 lakh policy and there would be no need for the Super Top Up Policy. In case the claim amount exceeds the 3 lakh Sum Insured under the basic policy then the claim under the Super Top Up Policy would trigger.”

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

 Circular by AIBRF is reproduced below

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Ref:2017/91                                                           Date: 28.08.2017

    

    The office Bearers/ Central Committee Members/ State Body Chiefs

    A.I.B.R.F

    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

PROCEDURE TO BE FOLLOWED BY THE RETIREES TO BUY AIBRF SUPER TOP POLICY OF NEW INDIA ASURANCE  CO. LTD

(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 1^st November 2017 to 31^st 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: moholkarsanjay29@gmail.com

(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.  

    3.WHY AIBRF LAUNCHING SUPER TOP POLICY FOR MEMBERS

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.  

 

4.SUPER TOP POLICY PROPOSAL OF K.M. DASTUR CO. 

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

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 Click here to view/ download FAQs

 Click here to  view /download proposal form

                                                 

CBPRO CIRCULAR REGARDING LATEST UPDATE ON PENDING ISSUES OF PENSIONERS AND RETIREES

Text of CBPRO Circular No. 011/2017 dated 03.08.2017
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Dear Comrades,

LATEST UPDATE ON PENDING ISSUES OF PENSIONERS AND RETIREES

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/-
(A.RAMESH BABU) (K.V. ACHARYA)
JOINT CONVENERS 
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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.

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To,
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

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