Compensation to the family members after the death of Bank Employee – Eleventh Bipartite

Speak for those who cannot speak for themselves

Fight for those who cannot fight for them selves

Never thought that we will be writing this article.  We were fighting for our (Bankers in service ) benefits while in service  with government and IBA. There are organisations  as well as individuals fighting (struggling )for the welfare of the retirees.  But we are leaving one class (i.e deceased employees and their families) who can’t speak for then selves or  lobby for their demands and its time to speak up or them.

We did witness a few sorrow demises of our young colleagues.   We were silent spectators for the ordeals their families have to go through  the difficult times.

Adult mortality rate in india as per the census is  3.6% Per annum ( Aged 15 to 29 ) and it goes as high as 52.6% when it comes to age of 30 to 69 years. It’s a tad higher when it comes to Banking Industry.

The following are the   benefits available to the family members of a deceased employee

1. SPF or NPS amount.
3. Leave Encashment.
4. Benefits from benevolent funds of unions and societies.
5. Group Insurance policy of banks.

Benefit	Officer with service of 5 years	Officer with service of 25 years
SPF/NPS	5 lacs	8 lacs
Gratuaity	2 lacs	9 lacs
Leave Encashment	1 lacs	5 lacs
Benefits from unions and Banks	5 lacs	5 lacs
Group Insuance ( In case of accident only)	4 alcs	4lacs
TOTAL	17 LACS	31 LACS

The benefits of group insurance changes from bank to bank.

Normally bank employees are known for their indebtedness. We take each and every possible loan. Thanks to the management for their generosity in increasing the Housing Loan and Vehicle loan quantum. We were indebted for eternity.  The following are the normal loans that each and every employee avails, and the probable monthly instalment.

Benefit	Loan amount	Instalement
Housing Loan	50 lacs	25000/-
Car Loan	8 lacs	6500/-
Clean loan	5 lacs	6000/-
Loans from society	5 lacs	5000/-
TOTAL	68 LACS	42500/-

All the above loans are common for a middle aged bankers.  Now with reduced eligibility in total service even the officers with service of less than 3 years are eligible for all the loans.

Benefit	Officer with service of 5 years	Officer with service of 25 years
Family Pension	12483/- ( For first 7 years and after that pension will be reduced by 50% )	23112/- ( For first 7 years and after that pension will be reduced by 50% )
Salary for the Family Member (Compassionate Appointment )	21423/-	21423/-
TOTAL	33906/-	44535/-

It is very clear from the above tables that the family will be virtually on roads, if the employee is under insured.

Now lets see some of the welfare measures/policies  by different banks.

The best is  the Liability insurance for all the loans availed by staff.  In case of any unforeseen event the total liability will be cleared by the insurance companies.   In some banks the cost is totally borne by the banks.

In some banks it is compulsory but the premium is to be paid by the employees them selves.

But in majority of the banks there are no such compulsions and it is totally voluntary.

Now we suggest the following and should be our demands for the upcoming Eleventh Bipartite Settlement.

1. All the loans should be covered under the liability insurance and the premium should be borne by the bank.
2. For all the employees Term Insurance policy should be mandatory to the extent of 120 times of their monthly gross salary.  The premium should be paid by the bank.