Clarification on Med.Ins. Policy for Retired!
INDIAN BANKS’ ASSOCIATION
HR & INDUSTRIAL RELATIONS
October 31, 2015
Chief Executives of Member Banks which are parties to the Bipartite Discussions
Implementation of Medical Insurance Scheme to Retirees as agreed vide Bipartite Settlement/Joint Note dated 25.5.2015
We refer to our Circular No.CIR / HR&IR / 2015-16 / XBPS / J /1413 dated 1.10.2015 advising member banks to obtain consent of retirees expeditiously and provide details to United India Insurance Company Ltd., (UIICL) and to make Group Medical Insurance Policy operational, preferably w.e.f. 1.11.2015.
We are informed that as on date, 13 banks have sent details of retirees and have either paid the premium or are in the process of remitting the premium and joined the Scheme w.e.f. 1.11.2015.
We have been receiving queries from banks, as to whether surviving spouse of the deceased employee (widow/widower) are eligible to join the Scheme.
We are to state that since insurance premium is to be paid by the retirees/surviving spouses of the deceased employees and UIICL has agreed to include spouse of the deceased employee,
Banks may include the spouse of deceased retired employee under the Group Medical Insurance Scheme. Further, Bank will not incur any additional cost by doing so as Insurance Premium would be borne by the retiree/spouse.
IBA received letters from few Banks to request the UIICL to start the Group Medical Insurance Policy for retirees from 1.12.15 (instead of 1.11.2015) and permit them to pay pro rata premium, as banks have not completed the process of collecting details/premiums from the retirees.
On reference to Insurance Companies, we are advised as under:
“In all our workshops we have been mentioning that there would be no pro rata premium for the retirees. This is so, because in case of the retirees the coverage and the premium is very competitive and is not available anywhere else. They also being covered under the policy without any medical examination and coverage for pre-existing ailments is also available to them. They may join at a later date on pro rata and could delay hospitalisation which may have been needed in November to December or January. In this manner, though they may pay a reduced pro rata premium, the claims would be 100% and this would upset the actuarial balance of the policy.”
In view of the foregoing, for retirees, the Policy will commence uniformly w.e.f. 1.11.2015 and they have to pay full year premium. Banks which are yet to submit details of retired employees/remittance of premium, are requested to do so at the earliest, so as to cover the retirees from the date of payment of premium, lest they will be deprived of the benefit of coverage from 1.11.2015 till the date of payment of premium .
Sd.. K UNNIKRISHNAN
DEPUTY CHIEF EXECUTIVE