Health Insurance – For protection of Health but of WHOM – BANK OR UIIC ????

From: Pathak R K <rbewa2010@gmail.com>
Date: 3 October 2016 at 19:39
Subject: Group Health Insurance - FACTS
To: aibparc@googlegroups.com, KLRao Amnesty International Member <klrao200@gmail.com>, "B.G Raithatha" <ubiretirees@gmail.com>, Prakash Patki <patkiprakash@gmail.com>

Health Insurance – For protection of Health but of WHOM – BANK OR UIIC ????

Recently, IBA has issued communication No. [ORDINANCE] No. CIR/HR&IR/J/2015-16/1169 dated October 1, 2016 to its Member Bank intimating the adamant attitude of UIIC for not extending the policy for 30 days to enable IBA to discuss in its Managing Committee & with Member Banks. IBA further advised to pay renewal premium which is 112% higher and threatened Member Banks in the said communication as “In the absence of renewal of the policy, liability on account of hospitalization claims by employees post 30.09.2016 will have to be honored by banks.” [Ex-A] In the communication of IBA, it is also mentioned that 15 banks have remitted the premium for renewal as demanded by Insurer i.e. UIIC.

The efforts of IBA were supported by the workman Union by advising their units on 1/10/2016 “ Our units in other Banks should immediately pursue the matter with their management to ensure that the policy is not allowed to lapse and employees do not get uncovered by the benefits of the policy.”[Ex-B] In the circular of Workmen Union, it is reported that 18 Banks have paid the premium. i.e. 15 reported by IBA and 3 more, Federal, UCo and Vijaya Bank. This facts itself reveals the role of Union to safe guard the Bank Employees to have continued cover.

The Officer Organization too issued communication to IBA on 1/10/2016 to get” renewal of the Insurance Policy as per the original terms negotiated “and in the absence of which, IBA must decide taking a legal recourse against the Insurance Company or approaching Consumer Forum and also member Banks may immediately be advised to honour the claims of the employees to the debit of their establishment expenses.[Ex-C]

Let us examine the facts from Insurance Company’s angle:-

The statement of premium received & claim paid is sourced from AIBEA circular No.27/210/2016/43 September 26, 2016 and same is as under:-

S.NO.	NAME OF BANK	ANNUAL PREMIUM PAID IN 2015    RS.	CLAIMS PAID + CLAIMS OUTSTANDING  (INC. DOMICILIARY)    RS.
	PUNJAB NATIONAL BANK	40,37,65,216	67,65,13,888
	CANARA BANK	31,06,24,387	51,79,83,971
	BANK OF BARODA	29,88,93,275	58,61,81,248
	CENTRAL BANK OFINDIA	22,09,56,516	40,31,58,983
	UNION BANK OFINDIA	21,31,98,633	33,90,46,777
	INDIAN OVERSEAS BANK	18,92,47,347	38,27,57,998
	BANK OF INDIA	18,63,19,972	28,70,16,534
	SYNDICATE BANK	18,47,99,781	28,63,29,127
	UCO BANK	14,39,94,675	24,06,62,496
	ALLAHABAD BANK	14,38,72,601	22,94,43,092
	OBC	12,58,39,603	23,9937,141
	INDIAN BANK	11,98,10,828	21,25,38,425
	ANDHRA BANK	11,95,38,950	18,74,82,060
	CORPORATION BANK	11,02,76,098	19,01,51,540
	SBH	10,75,34,013	20,32,98,907
	UNITED BANK OFINDIA	9,75,40,012	14,84,61,564
	BANK OFMAHARASHTRA	8,76,20,334	19,03,81,901
	SBT	8,47,80,301	14,83,72,930
	VIJAYA BANK	8,46,88,426	14,84,43,798
	DENA BANK	8,24,41,180	15,88,05,543
	SBP	7,55,84,531	10,58,07,890
	FEDERAL BANK  LTD.	6,81,15,359	12,48,61,938
	SBBJ	6,72,32,061	9,62,45,240
	PUNJAB & SIND BANK	6,63,97,355	11,35,35,087
	SBM	5,36,43,675	11,51,67,889
	SOUTH INDIAN BANK	4,49,34,101	5,65,21,669
	KARNATAKA BANK LTD.	4,34,01,163	5,80,92,150
	KARUR VYSYA BANK	4,10,87,795	5,48,09,199
	THE J&K BANK LTD.	2,99,02,366	1,96,61,848
	KOTAK MAHINDRA BANK	1,76,01,420	5,18,11,428
	LAKSHMI VILAS BANK	1,65,63,348	2,93,35,849
	DHANLAXMI BANK LTD.	1,34,55,536	3,28,62,400
	CATHOLIC SYRIAN BANK	1,23,77,855	1,60,49,760
	THE NAINITAL BANK LIMITED	46,01,214	94,39,643
	THE RATNAKAR BANK LTD	28,42,889	85,84,845
	CITI BANK	18,80,659	24,87,196
	IBA	2,17,745	4,46,920
	BNP PARIBAS	89,077	53,078
	BANK OF AMERICA	62,625	1,26,875
Grand Total		3,87,57,31,924	6,67,28,68,825
		387 CRORES	667 CRORES

While reviewing the table, surprisingly at Sr.No.37, the employees of IBA(non registered organization) are also covered in the Health Insurance Policy. The Medical Insurance Scheme was negotiated during 10th Bipartite Settlement and is, therefore, a part of the same. The 10th Bipartite Settlement took place on 25/05/2015 between Trade Union of Banks & Voluntary Association of Management of Bank [IBA] and IBA signed this Settlement on having Mandate from the Bank.

In this context, it is not clear which Union / Officer Association represented IBA Employees in the settlement and which authority has given mandate to IBA to sign Settlement on behalf of IBA Management. Further signatures on the settlement, reveals signatures of Managements of Banks & Trade Union / Association, does not reflect even remotely that settlement also covers IBA Employees. Thus act of IBA to cover its own employees is not only ultravires but also in violation of IRDA guidelines on Group Health Insurance more particularly clause 7 A of Health Insurance Regulations 2016 [Ex-D] published in Government Gazette, which reads as under:-

“No Group Health Insurance Policy shall be issued by any Insurer where a group is formed with the main purpose of availing itself of insurance. There shall be clearly evident relationship as specified by the Authority from time to time between the members of the group and the group policy holder”.

The above statement of premium and claim reveals the fact that Insurer has paid claims 172.35% of the claim received amount. It is not clear how much amount is contributed towards domiciliary treatment. Off course UIIC, which is in business of Insurance since 1938, being commercial organization is not expected to incur loss from the transaction and its act of increasing premium at renewal seems to be obvious, though illegal, arbitrary and against not only terms of contract [contract of insurance] but IRDA directives too.

The act of Insurer is illegal as it acts are violation of IRDA on following counts:-

1] Insurer cannot load premium more than 18% as agreed at clause 5.18 of the Policy Issued by the Insurer.

2] The act of the Insurer to revise premium upward with short notice is in violation of policy term reflected at clause 8 which clearly states that “We shall notify you of such changes at least three months before the revision are to take effect”. Under these circumstances the act of Insurer to deny extension of cover for 30 days more to decide on renewal is absolutely illegal and arbitrary.

3] The act of the Insurer to enhance the premium 112% at renewal is in violation of regulation 10 [C] of Health Insurance Regulations 2016.

4] The Act of Insurer to enhance the premium by 112% is in violation of regulation 25 [ii] of Health Insurance Regulations 2016.

Now all the issue of enhanced premium of 112% has be raised at the time of renewal without giving 3 months notice to policy Holder and dictating policy holder to succumb to their illicit tactics.

Let us now clear what Supreme Court Says about “Renewal” of policy:-

“A renewal of an insurance policy means repetition of the original policy. When renewed, the policy is extended and the renewed policy in the identical terms from a different date of its expiration comes into force. In common parlance, by renewal, the old policy is revived and it is sort of a substitution of obligations under the old policy unless such policy provides otherwise. It may be that on renewal, a new contract comes into being, but the said contract is on the same terms and conditions as that of the original policy” [BIMAN KRISHNA BOSE Vs. RESPONDENT: UNITED INDIA INSURANCE CO.LTD. & ANR- Appeal (civil) 2296 of 2000]

The honorable J. Khare & Patil further made it clear that “Where an insurance company under the provisions of the Act having assumed monopoly in the business of general insurance in the country and thus acquired the trappings of the State being other authorities under Article 12 of the Constitution, it requires to satisfy the requirement of reasonableness and fairness while dealing with the customers. Even, in an area of contractual relations, the State and its instrumentalities are enjoined with the obligations to act with fairness and in doing so, can take into consideration only the relevant materials. They must not take any irrelevant and extraneous consideration while arriving to a decision. Arbitrariness should not appear in their actions or decisions. In the present case, what we find is that arbitrariness is writ large in the actions of the respondent company when it refused to renew the mediclaim policy of the insured on the ground of his past conduct i.e. having gone into litigation for payment of his claim against the respondent company. We are, therefore, in agreement with the view taken by the High Court that the order of the respondent company refusing to renew the medi-claim policy of the appellant was unfair and arbitrary”.

Further Apex court while allowing the civil Appeal of Policy holder also allowed cost of Rs.5000/-. Incidentally, the respondent in above Civil Appeal and Lead Insurer in IBA induced / Introduced Health Insurance Scheme is UNITED INDIA INSURANCE only. Copy of the Judgment attached as Ex- E.

On 19/06/2013, South Mumbai District Forum ordered an Insurance Company [Pravin Shah Vs New India Assurance Company] ordered to refund the excess premium charged through loading.

It is illegal to refuse renewal of policy. So when an Insurance Company does not want to renew a policy that has become onerous, it adopts the backdoor method of loading the premium excessively, making it unaffordable for the insured, who may then voluntarily opt out. In present case, UIIC is adopting the same route.

The IBA is voluntary association of Management of Banks and is expected to act in the Interest of Bank while dealing with the Insurer Company but on the contrary IBA is compelling its member to renew the Health Insurance Policy and pay insurance premium of Rs. 821 crores on renewal to UIIC .

IBA is so panic for renewal of Health Insurance Policy and acting contrary to object for which it is formed.

Enclosed Ex-F reveals that, Insurer had paid claim 72 % of above premium but premium is loaded 112%. WHY again 40% overloading???

∙         BNP Paribas is eligible for 5 % discount but has to pay 112% more.

∙         J & K Bank is eligible for no discount / No loading but still have to pay 112% more.

∙         South Indian Bank & Catholic Syrian bank can be covered by loading 13% but still have to pay 112% more.

∙         Karnataka Bank, City Bank and Karur Vyasya Bank can be covered by loading 15% but still have to pay 112% more.

∙         Rest of the Member Bank can be covered by loading 18% as per clause 5.18 of the policy document which can be relied in case of dispute.

It is not clear why IBA does not want litigation with UIIC and on the contrary sue-motto appearing in Supreme Court in case of Retirees???

IBA, if decide to take UIIC on task, can save Member Banks’ 435 crores, the amount asked by way of enhanced premium. If not ready to act as “INTELLIGENT BANKERS ASSOCIATION “will lead to straight way addition of Rs.155 crores profit to UIIC.

The core issue needs clarification from all concern is, on one side GOI is initiating measures to improve the profitability of Bank by subscribing capital to Bank and to make them Globally competitive and on the hand IBA is bent upon to add to the losses of its Member Bank which is against policy of GOI.

The real problem is ahead as the policy for retirees is due for renewal on 1/11/2016 and premium has to be paid by retirees, POOR retirees will have to accept this unreasonable premium which is not only exorbitant but equal to / double of their monthly pension / family pension and acts of UIIC / IBA and Bank raises doubt that whether the policy is implemented to protect the life of Retirees or to destroy them with a view to remove them from members of Pension fund????.

It is for the retiree organization to take the call and ensure that premium for retiree for renewal should not be enhanced as:-

∙         The cover for domiciliary treatment is not extended to Retirees as extended to in service employees;

∙         Only two members are covered in definition of family as against 5 members for in service employees; Alternatively, if premium is enhanced;

∙          It should be fair, reasonable & to be borne by the Bank from welfare fund.

The IBA and Banks can settle the issue with UIIC just making them understand in clear Terms of NOT only opting out of the Health Insurance Policy BUT also STOPPING Insurance business to UIIC arising out of Banks Lending activity.  

PATHAK R K

Ex- D is mailed separately on demand as it is too big too load

Note :- Author being resignee is not covered in the Health Insurance Policy, by Dena  Bank, [Headed by IBA Chairman] Despite Policy Documents issued by UIIC covers the Resignee and 16 banks have extended the cover to this category.

The views expressed are based on the contents agreed in the Policy and documents attached herein.

Bank of India Fixes Lending Rates At 9-9.35% From October 7

Public sector lender Bank of India on Wednesday said it has fixed marginal cost of funds based lending rate (MCLR) at 9-9.35 per cent with effect from October 7.

The bank has fixed the marginal cost of funds based lending rates with effect from October 7, 2016, it said in a regulatory filing.

For overnight tenor, the rate will be 9 per cent, 9.2 per cent for three months, 9.25 per cent for six months and 9.35 per cent for one year. 

Shares of Bank of India closed 0.8 per cent higher at Rs. 119.75 apiece on BSE.

Mergers no quick fix for public sector banks; they need autonomy

More than the size of the bank, what matters is the composition and the empowerment of the bank's Board which needs to include professionals without operational interference from the government, said ASSOCHAM President.

   

A+ a-    0

Asserting there are no quick fixes for grave
problems facing the public sector banks, mainly
 centered around close to Rs.5 lakh crore
non-performing assets, ASSOCHAM
 President Mr. Sunil Kanoria said a
paper brought out by the chamber clearly
 suggests mergers or consolidation of the
PSBs is certainly no answer to the present
crisis, which can only be resolved by
 professionalizing these banks with the
government keeping an arm’s length.  

Addressing the media, Mr. Kanoria said, “Our paper has also noted that as things stand
 today, the boards of the PSBs are not empowered enough to choose a glide path for their
banks. Instead, they need to refer to the Finance Ministry circulars even for mundane things.”

Releasing a study titled ‘Convergence, Not Consolidation Answer for Public Sector Banks,’
 along with chamber’sSecretary General, Mr. D S Rawat at a press conference held in
New Delhi said, “If size of the banks had a relationship with the health of the financial
 sector, the Chinese banks would have been the healthiest lot. But, the biggest concern
 before the global financial community today is the health of the Chinese banks”.

Of the top ten global banks on the S & P Global Market Ranking, the first four are from
China with Industrial and Commercial Bank of China right at the top. Only two American
banks - JP Morgan and Bank of America, figure on the table of top ten and the Wall Street
has no liking either for the size and seems quite disillusioned with the so-called ‘Too Big to
Fail’ concept whereupon it is on the sovereigns to save their banks even if they go reckless
 in their business.

“But then, somehow, here in India we have got this penchant for large size to be achieved
by merging different entities”, said Mr. Kanoria.  If at all, there is a case for a merger, it is
weak bank merging into strong one; but here we have a situation where there are hardly
strong banks in terms of crucial parameters, large book size notwithstanding.

With some high profile borrowers getting into litigation and facing criminal probes, the public
discourse puts additional pressure on the government, to find some quick fixes for NPA-ridden
 banks, which find themselves terribly constrained to improve lending with the credit growth
 well below 10 per cent.

More than the size of the bank, what matters is the composition and the empowerment of the
 bank board’s which need to include professionals without operational interference from the
 government, said ASSOCHAM President.

Unlike the present situation where the Financial Services Division in the Finance Ministry
 is virtually the master of the PSBs, the level of the government interface with the banks
 should be well-defined and  be done only through the Banks Board Bureau (BBB) ,
comprising  people of eminence, integrity and  domain expertise

There is a case, certainly for synchronization of the businesses among the PSBs. The paper
said there could be a few PSBs which are strong in say, automobile portfolio in a particular
region, say south India. On the other hand, there may be banks which are strong in agro
 financing in the same area but are not doing well in automobile finance. The entire portfolio
 of auto finance can be swapped. Conversely, same thing can be achieved for the agro financing
portfolio, of course over and above the mandatory priority sector lending.

Sensing an inflexion point, the paper said the technology driven banking is here, right away
and it is only going to increase. In about a year, 17 new banks will begin business. These are
 not driven by sheer size; but would leverage technology to reach the un-reached; create new
 banking customers, take away existing customers from those complacent about their business
 and would redefine the way people at large do their financial transactions.

How Much You Could Save On Home Loan EMIs After RBI Rate Cut

The Reserve Bank of India today cut repo rate by 25 basis points or bps, lowering its key lending rate to a six-year low of 6.25 per cent. Banks are expected to pass on the benefit of lower rates to customers. 

Currently, banks follow the marginal cost-based lending rate or MCLR mechanism for pricing new floating-rate loans. This new regime came into effect from April 1 this year. Earlier, banks used to price their loans according to their base rates. Customers whose home loans are still linked to base rates can also shift to MCLR rates for a fee. The base rate is also expected to trend lower after RBI's rate cut. 

Under the MCLR mechanism, the rates are closely linked to the cost of incremental deposits.  

The RBI on its part hopes that the recent cut in small savings rates as well as its steps to infuse liquidity into the financial system will help banks to transmit its rate cuts to customers. 

"The easy liquidity conditions engendered by the Reserve Bank's operations should also enable the smooth transmission of the policy action through various market segments. Furthermore, banks should find added impetus for better transmission by the recent downward adjustment in small savings rates," the central banks said in its policy statement. 

Since January 2015, the RBI has cut the repo rate by 175 basis points but banks have passed less than half of the central bank's rate cut to their customers. Repo rate is rate at which RBI lends to the banks. 

Rating agency ICRA said that after the RBI's rate cut provides banks some room to lower their lending rates. "No change in the central bank's liquidity neutral stance amidst incomplete transmission of past policy action as well as the recent reduction in various small savings rates, does provide some room for banks to lower their lending rates," the rating agency said. 

Assuming banks cut their interest rate cut by 25 bps, it would result in monthly savings of Rs 488 or Rs 5,855 annually for customers with home loan of Rs 30 lakh. This is based on home loan interest rate falling to 9.25 per cent from 9.5 per cent on a 20-year loan.
 

For customers, with Rs 50 lakh and Rs 75 lakh loans, the annual savings would be Rs 9,759 and Rs 14,638 respectively, assuming the same interest rate and loan tenure.

source  ndtv profit
 

how to read bar code everyone must know

HOW TO READ BAR CODES... (everyone must know)

ALWAYS READ THE LABELS ON THE FOODS YOU BUY--NO MATTER WHAT THE FRONT OF THE BOX OR PACKAGE SAYS, TURN IT OVER AND READ THE BACK CAREFULLY!

With all the food and pet products now coming from China, it is best to make sure you read label at the supermarket and especially when buying food products. Many products no longer show where they were made, only give where the distributor is located. The whole world is concerned about China-made "black-hearted goods".

Can you differentiate which one is made in Taiwan or China ? The world is also concerned about GMO (Genetically Modified Organism) foods; steroid fed animals (ex: 45 days old broiler chicken).

It is important to read the bar code to track its origin. V to read Bar Codes....interesting !

If the first 3 digits of the bar code are 690, 691 or 692, the product is MADE IN CHINA.
471 is Made in Taiwan .
If the first 3 digits of the bar code are 00-09 then it's made or sourced in USA.

This is our right to know, but the government and related departments never educate the public, therefore we have to RESCUE ourselves. Nowadays, Chinese businessmen know that consumers do not prefer products "MADE IN CHINA", so they don't show from which country it is made. However, you may now refer to the barcode -

Remember if the first 3 digits are:
890......MADE IN INDIA
690, 691, 692 ... then it is MADE IN CHINA
00 - 09 ... USA and CANADA
30 - 37 ... FRANCE
40 - 44 ... GERMANY
471 ........ Taiwan
45 or 49 ........JAPAN
489...........HONG KONG
50 .......... UK
57 .........DENMARK
64..........FINLAND
76.........SWITZERLAND and LIENCHTENSTIEN
471......... is Made in TAIWAN (see sample)
628.........SAUDI ARABIA
629.........UNITED ARAB EMIRATES
740..........745 - CENTRAL AMERICA

All 480 Codes are Made in the PHILIPPINES. Share it!

Renewal of Group Health Medical Insurance Policy for Employees, 2016-17 only 18 bank already paid

  ALL INDIA BANK EMPLOYEES' ASSOCIATION

Central Office:  “PRABHAT NIVAS”    Regn. No.2037

Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001

Phone: 2535 1522    Fax: 4500 2191,  2535 8853    Web: www.aibea.in

e mail ~ chv.aibea@gmail.com & aibeahq@gmail.com

CIRCULAR LETTER NO. 27/212/2016/45       October, 1, 2016

TO ALL OFFICE BEARERS/ STATE FEDERATIONS /
ALL INDIA BANKWISE ORGANISATIONS

Dear Comrades,

 Reg: Medical Insurance Scheme

We have already forwarded the copy of our letters to IBA dt. 25th, 28th and 29th September, 2016 regarding the premium payable on the Medical Insurance Policy for renewal of the same.  While the hike in premium demanded by the UIIC is on the higher side and it has been unilaterally decided by them and hence the issue must be taken by IBA/Banks with UICC, it is unacceptable that the policy may not be renewed and employees will be kept uncovered.  Hence we had taken up the matter immediately and strongly with the IBA.

We learnt today that about 18 Banks have already paid the premium for renewal.

Andhra Bank	Dhanlaxmi Bank Ltd.
BNP Paribas	Federal Bank
Dena Bank	Karnataka Bank
Indian Overseas Bank	South India Bank
Bank Of Baroda	Karur Vysya Bank Limited
Bank Of Maharashtra	Nainital Bank Limited
Central Bank Of India	Ratnakar Bank Ltd
United Bank Of India	UCO Bank
Bank Of America	Vijaya Bank

IBA has sent their communication to day informing that Banks that if the Policy is not renewed by paying the revised premium, liability on account of hospitalisation claims by employees will have to be honoured by the banks.

Our units in other Banks should immediately pursue the matter with their management to ensure that the policy is not allowed to lapse and employees do not get uncovered by the benefits of the policy.  

        

With greetings,

                                                                       Yours comradely,

C.H. VENKATACHALAM

GENERAL SECRETARY

Pto: IBA communication

INDIAN BANKS ASSOCIATION

HR & INDUSTRIAL RELATIONS               

No. CIR/HR&IR/J/2015-16/1169                                     

October 1, 2016

 Participating Bank of Group Medical Insurance Scheme

 Dear Sir/Madam,

 Renewal of Group Health Medical Insurance Policy for Employees, 2016-17

We refer to our Circular No. CIR/HR&IR/J/2016-17/1151 dated 28th September 2016, in terms of which participating banks of said Insurance Policy were advised that the United India Insurance Co. Ltd. has not acceded to the request to continue the existing policy at least for one month i.e. up to 31.10.2016 at existing premium rates by paying pro-rata premium for additional one month. As the term of existing policy was expiring on 30.09.2016, the premium for renewal of the policy was to be paid before 1.10.2016 to continue the coverage under the policy. Banks were therefore advised to do the needful accordingly, considering all the aspects. The United India Insurance Co. Ltd. was once again requested to extend the policy term up to 31.10.2016 vide our letter No.HR&IR/ KSC/ XBPS/ J/ 1158 dated 29th September 2016, as the matter is to be discussed in the Managing Committee of IBA in its meeting scheduled to be held on 7.10.2016. However, the Insurance Company has shown their inability to extend the same. 

2. Keeping in view the fact that the premium rates given by the Insurance Company for renewal of said policy are final from their side and also the consequences to be caused due to non-renewal of the policy on 1.10.2016, following banks have already remitted the insurance premium amount to the United India Insurance Co. Ltd. 

1	Andhra Bank	9	BNP Paribas
2	Bank Of Baroda	10	Dhanlaxmi Bank Ltd.
3	Bank Of Maharashtra	11	The Karur Vysya Bank Limited
4	Central Bank Of India	12	The Nainital Bank Limited
5	Dena Bank	13	The Ratnakar Bank Ltd
6	Indian Overseas Bank	14	Karnataka Bank
7	United Bank Of India	15	South India Bank
8	Bank Of America

3. In the absence of renewal of the policy, liability on account of hospitalization claims by employees post 30.09.2016 will have to be honoured by banks. Hence, the participating banks are advised to take a considered decision on renewal of the policy without further delay.

 Yours faithfully,

 K UNNIKRISHNAN

CHIEF EXECUTIVE (OFFG.) 

Hate reservation build new India

Personally I dont have any hatred towards OBC/SC/ST & so on.But reservation should not be a tool to deny any right to others. In this practical world everything must be on merit basis.Especially admission to collages,jobs in government organisations,subsidies,discounts ETC:::

 

  I support reservation if it is to uplift the economically backward. Once some one