Medical Insurance Scheme
AIBEA/GS/2016/99 28th September 2016
Indian Banks’ Association Mumbai
Reg: Medical Insurance Scheme
Ref: Our letter dated 25-9-2016
Further to our above letter on the issue, we observe that the IBA is advising Banks to take their own decision in respect of the continuation of the Scheme. The Scheme is a part of the BP Settlement and all Banks are bound by it as per the mandate given by them to IBA. There cannot be any question of discretion to any Bank to opt out. IBA has negotiated the scheme on behalf of the member Banks and now the burden of any problem cannot be put on the shoulders of the individual banks. IBA must address the problem and take a decision.
The insurance policy will come to an end on 30th September, 2016 and if it is not renewed before that, the policy may not continue and employees will be put into unimaginable hardship. When it was known that the policy will expire on 30th September, waiting till the end is unfortunate. Either UIIC is at fault or IBA is responsible. We regret to note the casual approach in this regard because the scheme covers lacs of employees and their family members.
While the hike in premium is no doubt disproportionate and needs to be sorted out between IBA and UICC, the policy cannot be allowed to be lapsed or discontinued. All Banks must continue to be covered by the policy by remitting the premium subject to resolving the problem later.
We wish to put IBA on notice that for any discontinuation of the scheme and lack of coverage for the employees, the IBA will be solely responsible and it may result in a serious and immediate industrial unrest.
We seek your immediate attention on top priority within 24 hours.