From the UIIC/IBA circular dated 06-10-18, on UIIC Group Health Insurance Policy for Bank Retirees, it could be interpreted as under:
- A cover of RS 4 lakh WITHOUT Domiciliary, costs annual premium including GST is Rs 28,792/- to a retiree officer. Whereas for a cover of RS 4 lakh WITH Domiciliary annual premium (including GST) costs him Rs.82, 373/-. It means for a sum assured of Rs 40,000 for DOM, the member requires to pay a premium of Rs.53, 581/-. Further, in this case one has to pay premium of Rs.42373/- for insurance cover of Rs.360000/-. On the other hand, a member who sets aside Rs.40000/- for domiciliary treatment without claiming DOM from insurance company, saves Rs.13581/- (i.e. 53581-40000) from premium payable and also he also gets higher cover of Rs.400000/- instead of coverage of Rs.360000/- to a person opted for DOM coverage. The situation of award staff retirees is no different in the above case.
Conclusion: It is not a prudent decision to go for an insurance cover with domiciliary under the scheme.
- The base coverage of Rs.4 lakh/ Rs.3 lakh + Super Top up coverage under option 1 is cheaper compare to premium payable for reduced base coverage of Rs.3 lakh and Rs.2 lakh + with same amount of Super Top up coverage under option 2. A base cover of Rs.4 lakh + Super top up of Rs.5 lakh costs Rs.33481/-(Rs.28, 792+5,049=33481/-) to a retiree officer. But, a Base cover of Rs.3 Lakh+ Super Top Up (Rs.5 Lakh) costs Rs.35319/- (i.e. Rs.27, 745+Rs 7,574=Rs.35, 319) to him/her under option 3. It means a retiree officer pays lesser premium of Rs.33481/- for the cover of Rs.9 lakh (4 lakh+ top up 5 lakh) and pays Rs.35319/- for the cover of Rs.8 lakh (3 lakh+ top up 5 lakh). Similarly, an award staff retiree pays premium of Rs.26252/- for 7 lakh and pays Rs.27306/- for a cover of Rs.6 lakh.Conclusion: It is a loss proposition in the event a member opts for super top up coverage of Rs.5 lakh/4 lakh while reducing the base coverage from Rs.4 lakh/3 lakh to Rs.3lakh/2 lakh respectively.
- Under UIIC option 2, an officer may go for reduced basic insurance coverage from earlier coverage of Rs.4 lakh to Rs.3 lakh and an award staff from 3 lakh to 2 lakh. Premium reduced in base coverage is Rs.1047 (Rs.28792-27745) for Rs.3 lakh and Rs.1275 (Rs.21595-20320) for 2 lakh. It means premium reduced is only Rs.1047 and Rs.1275 respectively for officers and award staff for the reduction in coverage.Conclusion: Depending upon the financial and health condition of self and Spouse one can consider opting for a lesser cover of Rs.3 Lakh/Rs.2 lakh to save the premium. But the difference in premium payable is meager compared to reduction in insurance coverage.
- Other points:
(a)The room rent now stands reduced to Rs.4000 per day from the earlier Rs.5000 per day.(b) Because of exorbitant increase in premium on DOM coverage a retiree is prohibited from going for PED Cover (PED=PRE EXISTING DEASEAS) which is much against the spirit of the settlement/Joint Note.
Disclaimer: Opinions expressed here above is author’s personal opinion/interpretation which shall not be construed as a recommendation to anyone.
Related article: Renewal of uiic group health insurance policy for Bank-retirees for-the period 01-11-2018 to 31-10-2019