HEALTH INSURANCE OPTIONS FOR RETIRED BANKERS

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  .    ​

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                                     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  :

NEW ARTICLE       

         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 ​

​CATEGORY	SUM INSURED ​	PREMIUM	GST	GROSS PAYABLE
AWARD STAFF	Rs 3,00,000	​21,973	3,955	25,928
​OFFICERS	Rs 4,00,000	29,295	5,273	​34,568

2. WITH DOMICILIARY   ( 10 % OF THE INSURED AMOUNT ) ​

CATEGORY	SUM INSURED	PREMIUM ​	GST	​GROSS PAYABLE
​AWARD STAFF	​Rs 3,00,000	​57,391	10,330	67,721
​OFFICERS	Rs 4,00,000	76,516	13,773	90,289

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 .  ​

 

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 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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