We acknowledge with thanks for the inputs provided by Sri Venkatabhattachar , retired officer from Indian Overseas Bank
HEALTH INSURANCE FOR RETIRED BANKERS
Originally published on 24.08.2018 as continuation of our article " Retired bankers and Health Insurance "
In our article on " Retired bankers and Health Insurance " , we had taken up the issue of health insurance for bankers who were under a group insurance . The insurer now has proposed hike of insurance premium by more than 100 % and it has caused heartburn for the retirees . Many are unable to pay the enhanced premium as it may take away the pension they receive for few months . In this connection we had discussed the options available to retired bankers if the insurer insists for the hike . Apart from going in search for a new insurer , other avenues available are to agree for some enhancement , reduce the insurance amount or put limits on services availed at hospital . We had attached a survey form to the article seeking their preferences on the solution suggested .
BLOG ARTICLE ON
RETIRED BANKERS AND HEALTH INSURANCE
The article is about a recent development in which insurance company which was hitherto insuring health of retiree bankers , through a group insurance policy , is said to have proposed increase in the cost up to 150 % . Elderly bankers with meager pensions are unable to meet the cost and are perplexed not knowing what to do . In this circumstance , the article looks in to possible solutions to the problem .
TO READ THE ARTICLE CLICK HERE
PRESENT POSITION OF THE INSURANCE
The existing group policy is expiring on 31st , October 2018 . The existing premium schedule is as follows :
HEALTH INSURANCE PLANS FOR SENIOR CITIZENS
WITH OR WITHOUT ENTRY AGE RESTRICTION
TO READ THE ARTICLE CLICK HERE
We understand that insurance company has put up following premium schedule for the retirees for renewal for the year 2018-19 ( We obtained the figures from social media posts which is not verified and we are not sure of the correctness ) :
1. WITHOUT DOMICILIARY
2. WITH DOMICILIARY ( 10 % OF THE INSURED AMOUNT )
The above quotation is more than the double amount of the premium paid for 2017-18 and hence there is lot of anger / frustration for the retirees . Further the quotation for insurance with domiciliary is of no use to the insured as additional amount payable for domiciliary treatment is much more than the insurance amount . For award staff an amount of Rs 41,793 to be paid additionally for obtaining domiciliary treatment cover of Rs 30,000 . Similarly for officers , additional payment of Rs 55,721 is expected for a cover of Rs 40,000 . Even if the reported quotes are correct , the quotes will have no interest to the retirees and practically proposal is as good as saying no cover for domiciliary treatment .
We understand that , as of now , insurance company has expressed its inability to revise the quotation or extend the validity period of existing policy . In that case , retiree bankers have to look in to various other options available , in case they like to have insurance cover for their and their family's health .
As most of the retirees have expressed their unwillingness / inability to the proposal at the existing rates , we checked up the websites of various other insurance companies to find any cheaper options are available .
PROS AND CONS OF SWITCHING TO NEW INSURANCE POLICY
If the retirees like to shift from the existing group policy to any other individual cover , we found following hassles they have to face :
1. Existing ailments will not be covered for 24/ 36 / 48 months by the new insurance company . In an advanced age to lose benefit for 2 to 4 years for retirees will be a great risk , unless they have already some insurance individually .
2. Premium will vary in each case and will be based on the age of the retirees , of their family members and of their health conditions . Retirees between 60 to 70 years may get some benefits on premium , but older retirees may not get cover and have to pay higher premium even if an insurance company agrees to issue policy .
3 . Many insurance companies require medical examination and many of the retirees may not be eligible for cover after medical examination .
4 . Some of the insurance companies will have riders limiting claims on various types of claims .
5. Most of the insurance companies will cover 80 % to 90 % of the expenses and balance is to be borne by the policy holders . Presently the group insurance policy has 100 % coverage .
In the circumstances recently retired bankers aged below 65 ( maximum up to 70 years ) may be able to get themselves and their families covered at a lesser premium while the retirees in advanced ages may be left out of any cover , if the existing group cover lapses .
SMALL FINANCE BANKS PAYMENT BANKS
UNIFIED PAYMENT INTERFACE BHARAT BILL PAYMENT SYSTEM
BHIM APP AADHAAR
e-INSURANCE Account ( eIA ) SWIFT
ALTERNATE HEALTH INSURANCE COVERS AVAILABLE FOR SENIOR CITIZENS
In case of failure to get a favorable renewed cover for retirees under group insurance , then retirees have to find new alternatives to cover themselves . We have searched and found few insurance companies who entertain senior citizens for fresh policies and the details are as follows :
HDFC ERGO HEALTH INSURANCE : Cover is available from Rs 1 lakh to Rs 50 lakhs for senior citizens . For a cover of Rs 5 lakhs for 2 members , premium is from 28 ,025 to Rs 80,000 + up . Entry and exit ages are life long . Higher priced products are available with higher benefits . .For website link , CLICK HERE
STAR HEALTH INSURANCE FOR SENIOR CITIZENS : Cover is available from Rs 1 lakh to Rs 10 lakhs for senior citizens . For a cover of Rs 5 lakhs for 2 members , premium is 36,582 up to 75 years . For website link , CLICK HERE
RELIGARE SENIOR CITIZEN HEALTH INSURANCE : Cover is available from Rs 3 lakhs to Rs 10 lakhs for senior citizens . For a cover of Rs 5 lakhs for 2 members , premium starts from Rs 29,124 to 58,080 depending up on age up to 70 years . Beyond 70 years policies have premium of Rs 84,123 and above . For website link , CLICK HERE
APOLLO MUNICH SENIOR HEALTH INSURANCE : Cover is available from Rs 2 lakhS to Rs 5 lakhs for senior citizens . For a cover of Rs 5 lakhs for each member , premium is from 22,553 to Rs 96,402 + up . Entry and exit ages are life long . For website link , CLICK HERE
IOB EASY HEALTH ( in association with APOLLO MUNICH ) :
Cover is available from Rs 3 lakhs to Rs 10 lakhs for senior citizens . For a cover of Rs 5 lakhs for 2 members , premium starts from Rs 13,862 to 17,643 depending up on age up to 75 years . . For website link , CLICK HERE
NEW INDIA ASSURANCE COMPANY :
Cover is available from Rs 1 lakh to Rs 1.5 lakhs for senior citizens . premium per member for Rs 1.5 lakhs ranges between Rs 5,720 to 7,650 depending up on age up to 80 years .
We have sampled out some of the alternate insurance cover available above . For complete list of health insurers and their websites , CLICK HERE
There are websites which offer comparing insurance policies and their premium like policybazaar.com and bankbazaar.com . One can also go to such sites and compare .
Please note that some of the websites of insurance companies , compare sites ask for your personal details before giving you a quote for premium and such companies will make follow up calls which may be irritating .
OUR OPINION : In the present scenario , all retiree bankers will be benefited if a negotiated settlement is arrived with the existing insurance company by the representatives of the retirees .
The proposed premium schedule by the present insurer , although substantially hiked by more than 100 % , still compares well with insurance cover provided by others . Any migration to other insurance companies individually will deprive the retirees of cover for existing diseases and older retirees may be left out without any cover . However it suffers from some lacuna like cover based on category , no option for individual policy and limited slab of covers .
As many retirees are expressing their inability to pay the proposed premium , it will be better to add additional proposals with lower premium and lower benefits so that it can be made accessible to all . There can be range of insured amounts from Rs 3 lakhs to Rs 10 lakhs with different premium schedules . There need not be any differentiation between different categories of retirees . A policy may be made available for one individual also where spouse has already deceased . Further options may be given for co-payment of 10 % to 30 % with discounts for the same . And to reduce the premium , there can be ceilings for room rents , ICU charges , ceiling per admission etc . The existing proposal may continued to be offered with full benefits who can afford the premium proposed . Thus a retiree should be able to buy the insurance at his / her convenience and financial position .
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RETIRED DGM ,