The officers/ employees who have retired from the bank service might be aware that those who had retired after 1.10.2017 are covered under the Bank’s Working Employees’ Policy till 30.09.2018. After that, they are supposed to take up the Bank Retirees’ Policy wherein premium is payable by the retirees.
Since the Retirees’ policy commence from 1st November of every year, there will be a gap of one month for those who retired between 1.10.2017 and 30.09.2018. Hence in order to have continuity, they are offered to pay pro-rata premium for the month of October 2018 so that they can renew from 1.11.2018 along with other retirees. Indian Overseas Bank has already issued circular in this regard vide 7F circular No.58 of 2018 dated 14.09.2018 with the pro rata premium rates offered by United India Insurance Company Ltd. As per IOB’s circular, members who are opting to keep the policy alive till 31.10.2018 shall pay pro-rata premium for one month. Other banks will issue similar circular if not already issued.
The pro-rata premium for one month under Retired Employees Policy Option II (without domiciliary/OPD)
Sum Insured Rs.4 lakh – Pro rata Premium payable Rs.1397 (including GST of Rs.213/-)
Sum Insured Rs.3 lakh – Pro rata Premium payable Rs.1048(including GST of Rs.160/-)
Sum insured Rs.3 lakh- Pro rata Premium payable Rs.1048 (including GST of Rs.160/-)
The pro-rata premium for one month under Retired Employees Policy Option II (with domiciliary/OPD)
Sum Insured Rs.4 lakh – Pro rata Premium payable Rs.3142 (including GST of Rs.479/-)
Sum Insured Rs.3 lakh – Pro rata Premium payable Rs.2356(including GST of Rs.359/-)
Sum insured Rs.3 lakh- Pro rata Premium payable Rs.2356 (including GST of Rs.359/-)
Though the premium rates for renewal of retirees’ policy are under negotiation, it is better to keep the Insurance policy alive, by paying the pro rata premium for the month of October 2018 on or before 22.09.2018 (online or offline) as per the procedure is given in the IOB’s circular. However, it is up to the decision of the retirees whether to opt for Non-Domiciliary cover or with Domiciliary cover (they were provided with domiciliary cover during their tenure in Bank) because there is a difference in the rate of premium for Non-Domiciliary cover and Domiciliary cover for retirees. As per the information received, once the option is taken, they are not allowed to change it during renewal. Further, those who do not pay the pro rata premium now, may not be permitted to renew the policy on 1.11.2018. Since the main feature of the Retirees’ policy is covering the pre-existing diseases, it is always better to keep the policy alive now by paying the pro-rata premium.
These retirees are advised to take a prudent decision now taking into their other factors like the personal policy they have, their son or daughter’s policy wherein they are covered, etc.