Thursday, 25 October 2018

Renewal of Medical Insurance Scheme - IBA Circular dt. 10.10.2018

Renewal of Medical Insurance Scheme - IBA Circular dt. 10.10.2018 

Renewal of Medical Insurance Scheme for Retirees as agreed vide Bipartite Settlement/Joint Note Dated 25th May, 2015

Indian Banks' Association

No. CIR/HR&IR/BRK/2018-19/6037
9th October 2018
CEOs of All member banks party to 10th Bi-partite Settlement/Joint Note dated 25.5.2015

Dear Sir/Madam,
Renewal of Medical Insurance Scheme for Retirees as agreed vide Bipartite Settlement/Joint Note Dated 25th May, 2015

We invite your attention to our letter CIR/HR&IR/2015-16/XBPS/J/1413 dated 1st October, 2015, in terms of which banks were advised to extend the Group Medical Insurance Scheme to retirees also subject to payment of stipulated premium by them. Said Scheme is optional for retirees.
  1. Thereafter, the Policy has been renewed for the year 2016-17 & 2017-18 and the current Policy is expiring on 31.10.2018.
  2. IBA vide its letter 16th July, 2018 called quotes from all Public Sector Insurance Companies and SBI General Insurance Co., who were the co-insurer of the existing Policy.
  3. In response to our letter Oriental Insurance Co., National Insurance Co., & SBI General Ins. Co. did not submit any quote for the Retirees policy. United India Insurance Co. & New India Assurance Co. submitted quotes as per Table below :-
Retirees option 1(Without Domiciliary)Retiree option 2(With Domiciliary)
2018-19 (Proposed for renewal)Award staffOfficerAward staffOfficer
New India Insurance23,00030,50058,50077,500
  1. As there was a proposed hike of 110% & 144% in the quotes for renewal of the Medical Insurance Policy without domiciliary and with domiciliary respectively, the matter was immediately taken up with UIIC who was L1 to re-examine and reduce the same.
  2. With great persuasion and concerted effort made by the IBA, UIIC has revised the quote vide its letter dated 6.10.2018.
  3. On the suggestions made by UFBU, UIIC gave option for sum insured i.e. Rs. 4 laksh / Rs. 3 Lakhs for Officers & Rs.3 Lakhs/ Rs. 2 Lakhs in case of Workmen. The insurance premium increase now quoted by UIIC after revision is 75% (earlier 110%) for without domiciliary and 123% (earlier 144%) with domiciliary (Annexure I)
  4. Since, the Medical Insurance Policy for Retired Officers/Employees is optional, we request all the member banks to seek consent and collect premium from the interested retiree Officers/Employees as per the option chosen by them for renewal of the Policy with UIIC, with the same terms and conditions mentioned in the aforesaid letter of UIIC.
  5. However, Banks are free to take up the Policy renewal by seeking quotes from any other Insurance Companies if the Banks decides to do so at their level.
  6. We once again advise that as mentioned in our letter dated 7th June, 2018, banks may require to allocate some separate manpower to address claims by following up directly with TPAs/Insurance Cos as the services of broker are not available.
  7. We enclose the revised premium quote received from UIIC (Annex II) for your ready reference.
Yours faithfully,
B Raj Kumar

Deputy Chief Executive

Annexure I
Retirees Policy Renewal Quotes***Renewal Quote provided by UIIC vide letter 2.7.18Final Quotes received from UIIC vide letter dated6.10.18 after rigorous persuasion by IBA**
Without Domiciliary (Rs.)With Domiciliary (Rs.)Without Domiciliary (Rs.)With Domiciliary (Rs.)
Officers (Sum Insured Rs. 4 Lakhs)29295(110%)*76516 (144%)*24400 (75%)*69808 (123%)*
Award Staff (Sum Insured Rs. 3 Lakhs)21973(110%)*57931 (144%)*18301 (75%)*52359 (123%)*
*** Above Quotes are exclusive of GST
** The Room Rent has been revised to Rs. 4000 perday
* Premium Increase over Previous Year i.e. 2017-18


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