HEALTH INSURANCE OPTIONS FOR RETIRED BANKERS
We acknowledge with thanks  for the inputs provided by Sri Venkatabhattachar , retired officer from Indian Overseas Bank ​
​ READ  OUR NEW  ARTICLE    ON   GROUP HEALTH INSURANCE PLANSÂ
​
WE HAVEÂ Â UPDATED THIS ARTICLEÂ ON 19.09.2021Â
​Originally published on 24.08.2018 as continuation of our article  Retired bankers and Health InsuranceÂ
Click to set custom HTML
 BANK RETIREES TO HAVE ONE MORE CHANCE TO OPT FOR GROUP INSURANCE :Â
Dated 09.11.2021: Window  to take Group Medical Insurance policy of National Insurance Company for bank retirees was closed by the end of last month . Now National insurance Company is permitting to pay the premium and join the scheme with the same premium and terms & conditions except for the following :Â
1. Any of the bank retirees who have not joined earlier can join for the schemeÂ
2. Cover for the insurance will begin from 1st, December , 201 and end on 30.10.2022 .Â
3. New applicants  have to pay the premium already prescribed and no pro-rata reduction in premium will be given .Â
4. Claims for the treatments / hospitalizations during month of November 2021 will not be entertained .Â
5. No further extension will be offered .Â
Bank retirees who are interested to join the scheme may contact their banks for further information .
Dated 09.11.2021: Window  to take Group Medical Insurance policy of National Insurance Company for bank retirees was closed by the end of last month . Now National insurance Company is permitting to pay the premium and join the scheme with the same premium and terms & conditions except for the following :Â
1. Any of the bank retirees who have not joined earlier can join for the schemeÂ
2. Cover for the insurance will begin from 1st, December , 201 and end on 30.10.2022 .Â
3. New applicants  have to pay the premium already prescribed and no pro-rata reduction in premium will be given .Â
4. Claims for the treatments / hospitalizations during month of November 2021 will not be entertained .Â
5. No further extension will be offered .Â
Bank retirees who are interested to join the scheme may contact their banks for further information .
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 .Â
Group insurance  for retiree bankers   were offered to bank retirees  for the year 2020-21  by National insurance Company , a public sector indurance company  which will end on 31.10.2021 . The insurer now has proposed  and agreed by IBA  a hike of insurance premium by  around 35 % to 40 % for the renewal period of 01.11.2021  to 31.10.2022  . 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 here discuss  the options available to retired bankers if there is no change in the hike . Apart from going in search for a new insurer , other avenues available are to agree for the enhancement , reduce the insurance amount  or put  limits on  services availed at hospital . ​
Group insurance  for retiree bankers   were offered to bank retirees  for the year 2020-21  by National insurance Company , a public sector indurance company  which will end on 31.10.2021 . The insurer now has proposed  and agreed by IBA  a hike of insurance premium by  around 35 % to 40 % for the renewal period of 01.11.2021  to 31.10.2022  . 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 here discuss  the options available to retired bankers if there is no change in the hike . Apart from going in search for a new insurer , other avenues available are to agree for the enhancement , reduce the insurance amount  or put  limits on  services availed at hospital . ​
 LATEST TERMS & CONDITIONS OF GROUP INSURANCE POLICY OF NATIONAL INSURANCE COMPANY :Â
Dated  13.10.2021 : The following are the terms & conditions  of the group insurance policy intimated by the National insurance company   for renewal of the group  policy for  the year 2021-22  with regard to choice of options , room rent & super top up policy  for both retired staff and  retired officers :Â
1. Award staff can opt maximum of Rs 3 lakhs base policy  and they can chose  base insurance range of Rs 1 lakh , Rs 2 Lakhs & Rs 3 lakhs .Â
2. Officers can opt for  base policies of Rs 1 lakh , Rs 2 Lakhs , Rs 3 lakh & Rs 4 lakhs .Â
3. Super top up policy is only available for retirees chosing either Rs 3 lakh or Rs 4 lakh base policy .Â
4. Under super top up policy , award staff can chose between Rs 1 lakh to Rs 4 lakhsÂ
5 . Under super top up policy , retiree officers can chose between Rs 1 lakh to Rs 5 lakhsÂ
 Regarding Room Rent :Â
1. Maximum daily room rent payable will be 1.5 % of sum insured and 2 % of sum insured  for ICU treatment for  policies  of base
cover Rs 1 lakh and Rs 2 lakhs .Â
2. Maximum room rent payable will be Rs 5,000 per day and Rs 7,500  for ICU treatment for  policies  of base
cover Rs 3 lakh and Rs 4 lakhs .Â
3. OPD and domiciliary treatments are not covered  under super top up policy .
Dated  13.10.2021 : The following are the terms & conditions  of the group insurance policy intimated by the National insurance company   for renewal of the group  policy for  the year 2021-22  with regard to choice of options , room rent & super top up policy  for both retired staff and  retired officers :Â
1. Award staff can opt maximum of Rs 3 lakhs base policy  and they can chose  base insurance range of Rs 1 lakh , Rs 2 Lakhs & Rs 3 lakhs .Â
2. Officers can opt for  base policies of Rs 1 lakh , Rs 2 Lakhs , Rs 3 lakh & Rs 4 lakhs .Â
3. Super top up policy is only available for retirees chosing either Rs 3 lakh or Rs 4 lakh base policy .Â
4. Under super top up policy , award staff can chose between Rs 1 lakh to Rs 4 lakhsÂ
5 . Under super top up policy , retiree officers can chose between Rs 1 lakh to Rs 5 lakhsÂ
 Regarding Room Rent :Â
1. Maximum daily room rent payable will be 1.5 % of sum insured and 2 % of sum insured  for ICU treatment for  policies  of base
cover Rs 1 lakh and Rs 2 lakhs .Â
2. Maximum room rent payable will be Rs 5,000 per day and Rs 7,500  for ICU treatment for  policies  of base
cover Rs 3 lakh and Rs 4 lakhs .Â
3. OPD and domiciliary treatments are not covered  under super top up policy .
PRESENT POSITION OF THE INSURANCEÂ
The existing group policy is expiring on 31st , October 2021 .  National Insurance company which  has issued   the present policy has offered  following premium for   the next one year : Â
The existing group policy is expiring on 31st , October 2021 .  National Insurance company which  has issued   the present policy has offered  following premium for   the next one year : Â
1. WITHOUT DOMICILIARYÂ
A. AWARD STAFFÂ Â FOR SUM ASSUREDÂ Â RS 3,00,000Â Â Â Â PREMIUM :Â RS 28,715 + GSTÂ RS 5,160Â Â =Â TOTAL PAYABLEÂ Â RS 33,884Â
B. OFFICERS       FOR SUM ASSURED  RS 4,00,000    PREMIUM : RS 36,652 + GST RS  6,597  = TOTAL PAYABLE  RS 43,249​
A. AWARD STAFFÂ Â FOR SUM ASSUREDÂ Â RS 3,00,000Â Â Â Â PREMIUM :Â RS 28,715 + GSTÂ RS 5,160Â Â =Â TOTAL PAYABLEÂ Â RS 33,884Â
B. OFFICERS       FOR SUM ASSURED  RS 4,00,000    PREMIUM : RS 36,652 + GST RS  6,597  = TOTAL PAYABLE  RS 43,249​
2. WITH DOMICILIARYÂ
​
A. AWARD STAFF  FOR SUM ASSURED  RS 3,00,000    PREMIUM : RS ​55,175 + GST RS 9,932  = TOTAL PAYABLE  RS 65,107
B. OFFICERS       FOR SUM ASSURED  RS 4,00,000    PREMIUM : RS 72,917 + GST RS 13,125 = TOTAL PAYABLE  RS ​86,042
​
A. AWARD STAFF  FOR SUM ASSURED  RS 3,00,000    PREMIUM : RS ​55,175 + GST RS 9,932  = TOTAL PAYABLE  RS 65,107
B. OFFICERS       FOR SUM ASSURED  RS 4,00,000    PREMIUM : RS 72,917 + GST RS 13,125 = TOTAL PAYABLE  RS ​86,042
The above quotation is around 30 % to 40 % higher than the  amount of the premium paid for 2020-21  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 31,223 to be paid additionally for obtaining domiciliary treatment cover of Rs 30,000 . Similarly for officers  , additional payment of Rs 42,793 is expected  for a cover of Rs 40,000 . Hence  the quotes will have no interest to the retirees and practically proposal is as good as saying no cover for domiciliary treatment . Â
 Group policy offered by National insurance Company to bank retirees  has some flexibility . The retirees who are unable to pay the premium quoted above can opt  for lesser cover amounts from Rs 1.00 lakh to Rs 3.00 lakhs . Spouses of expired retirees  can take policy for themselves at a discounted premium . People who are desirous of taking cover  for higher amount , can opt for  super top policies ( Rs 7.00 lakhs for clerical retirees and Rs 9.00 lakhs for retiree officers ) .Â
Â
As many of the retirees have expressed their  anger  or dismay to  the proposal for the fresh hiked rates , we checked up the websites of various other insurance companies to find any cheaper options are available .Â
​​
 Group policy offered by National insurance Company to bank retirees  has some flexibility . The retirees who are unable to pay the premium quoted above can opt  for lesser cover amounts from Rs 1.00 lakh to Rs 3.00 lakhs . Spouses of expired retirees  can take policy for themselves at a discounted premium . People who are desirous of taking cover  for higher amount , can opt for  super top policies ( Rs 7.00 lakhs for clerical retirees and Rs 9.00 lakhs for retiree officers ) .Â
Â
As many of the retirees have expressed their  anger  or dismay to  the proposal for the fresh hiked rates , we checked up the websites of various other insurance companies to find any cheaper options are available .Â
​​
Dated 02.10.2021 AIBEA has published a chart of insurance premium offered by National insurance company for group insurance  with multiple options for both Retired staff and retired officers . We are reproducing the charts for the use of retireesÂ
​
​
 PROS AND CONS OF SWITCHING TO NEW INSURANCE POLICY  Â
 If the retirees like to shift from the existing group policy to any other individual cover  , we found following hassles they have to face  :Â
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 .Â
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 .Â
3 . Many insurance companies require medical examination and many of the retirees may not be eligible for cover after medical examination . Â
4 . Some of the insurance companies  will have riders limiting claims on various  types of claims . Â
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 . Â
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 .  ​
​
 If the retirees like to shift from the existing group policy to any other individual cover  , we found following hassles they have to face  :Â
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 .Â
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 .Â
3 . Many insurance companies require medical examination and many of the retirees may not be eligible for cover after medical examination . Â
4 . Some of the insurance companies  will have riders limiting claims on various  types of claims . Â
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 . Â
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 .  ​
​
INVESTMENTÂ OPTIONSÂ FOR SENIOR CITIZENSÂ
CLICK HERE TO READ
CLICK HERE TO READ
ARTICLES ONÂ Â Â
                                   Â
 SMALL FINANCE BANKS                                       PAYMENT  BANKS   Â
                                    Â
UNIFIED Â PAYMENT INTERFACEÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â BHARAT BILL PAYMENT SYSTEMÂ Â Â
      BHIM APP                                                 AADHAAR Â
    Â
​e-INSURANCE  Account (  eIA  )                              ​
                                   Â
 SMALL FINANCE BANKS                                       PAYMENT  BANKS   Â
                                    Â
UNIFIED Â PAYMENT INTERFACEÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â BHARAT BILL PAYMENT SYSTEMÂ Â Â
      BHIM APP                                                 AADHAAR Â
    Â
​e-INSURANCE  Account (  eIA  )                              ​
ALTERNATE HEALTH INSURANCE COVERS AVAILABLE FOR SENIOR CITIZENSÂ
In case of failure  to get a favorable  renewed cover for retirees under group insurance , then some retirees may try 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 : Â
HDFC ERGO  HEALTH INSURANCE :  Cover is available from Rs 1 lakh to Rs 50 lakhs  for senior citizens . For a cover of Rs 3 lakhs for 2 members , premium  is  from Rs 18,683 to Rs 53,561 + GST .  For a cover of Rs 4 Lakhs , premium is from Rs 23,354  to  Rs 66,951 . Entry and exit ages are life long .  Higher priced products are available with higher  benefits . .For website link , CLICK HEREÂ
STAR HEALTH INSURANCE FOR SENIOR CITIZENS : Cover is available from Rs 1 lakh to Rs 25 lakhs  for senior citizens . For a cover of Rs 3 lakhs for 1 members , premium  is Rs 12,900 + GST   up to 75 years . For website link , CLICK HERE
IOB EASY HEALTH   in association with APOLLO MUNICH  : Â
Cover is available from Rs 3 lakhs to Rs 10 lakhs  for senior citizens . Maximum entry age 69 years . For a cover of Rs 3 lakhs for 2 members , premium starts from Rs 12,497  to 15,963 ( Inclusive of GST )  depending up on age up to 75 years .  For website link , CLICK HERE   Â
 We have sampled out some of the alternate insurance cover available above . For complete list of health insurers and their websites  , CLICK HERE  Â
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 .Â
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 . ​​
In case of failure  to get a favorable  renewed cover for retirees under group insurance , then some retirees may try 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 : Â
HDFC ERGO  HEALTH INSURANCE :  Cover is available from Rs 1 lakh to Rs 50 lakhs  for senior citizens . For a cover of Rs 3 lakhs for 2 members , premium  is  from Rs 18,683 to Rs 53,561 + GST .  For a cover of Rs 4 Lakhs , premium is from Rs 23,354  to  Rs 66,951 . Entry and exit ages are life long .  Higher priced products are available with higher  benefits . .For website link , CLICK HEREÂ
STAR HEALTH INSURANCE FOR SENIOR CITIZENS : Cover is available from Rs 1 lakh to Rs 25 lakhs  for senior citizens . For a cover of Rs 3 lakhs for 1 members , premium  is Rs 12,900 + GST   up to 75 years . For website link , CLICK HERE
IOB EASY HEALTH   in association with APOLLO MUNICH  : Â
Cover is available from Rs 3 lakhs to Rs 10 lakhs  for senior citizens . Maximum entry age 69 years . For a cover of Rs 3 lakhs for 2 members , premium starts from Rs 12,497  to 15,963 ( Inclusive of GST )  depending up on age up to 75 years .  For website link , CLICK HERE   Â
 We have sampled out some of the alternate insurance cover available above . For complete list of health insurers and their websites  , CLICK HERE  Â
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 .Â
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 OPINIONÂ :Â
 The proposed  premium schedule by the present insurer , although substantially hiked  , still compares well with  insurance cover provided by others . But there are insurance companies  who offer lower premiums  for the retirees below 70 years age . For example , HDFC Ergo offers premium of Rs 18,683 plus GST for senior citizens aged between 61 to 65 years and Rs 23,354 plus GST for Rs 4.00 lakhs cover for the same age group . But group insurance premium is much higher  than the above quoted premium . But 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 . Â
Hence  retirees below the age 70 years  , who are having no premedical condition like Diabetes , Blood Pressure  and have no medical history , may consider migration to other insurance companies . But for all others , there no option other than continuing  with the present arrangement .Â
 Â
 The proposed  premium schedule by the present insurer , although substantially hiked  , still compares well with  insurance cover provided by others . But there are insurance companies  who offer lower premiums  for the retirees below 70 years age . For example , HDFC Ergo offers premium of Rs 18,683 plus GST for senior citizens aged between 61 to 65 years and Rs 23,354 plus GST for Rs 4.00 lakhs cover for the same age group . But group insurance premium is much higher  than the above quoted premium . But 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 . Â
Hence  retirees below the age 70 years  , who are having no premedical condition like Diabetes , Blood Pressure  and have no medical history , may consider migration to other insurance companies . But for all others , there no option other than continuing  with the present arrangement .Â
 Â
New Updated ArticleÂ
        TAX PLANNING FOR FY 2021-22 ( AY 2022-23 ) Comprehensive  Article on Income tax changes in Rules, Rates , Slabs , Rebates  and Estimation CLICK HERE TO READ |
|