Elders are forced to leave IBA Mediclaim Scheme

Our correspondent

IBA Mediclaim scheme has come into existence from 1st October 2015 for the employees and officers and from 1st November 2015 for the retirees. In that scheme it was clearly mentioned that “the new Scheme as applicable to the officers/ employees in service would be continued beyond their retirement/superannuation/resignation etc. subject to payment of stipulated premium by them. The new Scheme would also cover the existing retired officers/ employees of the Banks and dependent spouse subject to payment of stipulated premium by them.”  That means that the entire scheme in full would be applicable for the retired employees also. Based on this understanding, thousands of retired employees discontinued their individual insurance policies and joined IBA Mediclaim scheme. But the rude shock was that the reimbursement under domiciliary treatment, which was part of the IBA Mediclaim Scheme, was not extended to the retired employees. Then after some discussions, domiciliary reimbursement restricting to 10% of the insurance policy of Rs.3 lakhs i.e. upto Rs.30000/- in the case of retired workmen and 10% of the insurance policy of Rs. 4 lakhs i.e. upto Rs.40000/- in the case of retired officers was extended whereas there was no such restriction for employees and officers in service. The irony is that they have to pay exorbitant differential premium to avail this benefit. For example, in the proposed scheme for this year commencing from 1st November 2022, the premium payable is as follows:

Amount in Rupees:

CategorySum assuredPremium Without domiciliaryPremium With domiciliaryDifference
Workmen3 Lakhs413347792036586
Officers4 Lakhs578089777639968

In the case of officers, for availing the benefit of Rs.40000/-, one has to pay a premium of Rs.39968/- and in the case of workmen, for availing the benefit of Rs.30000/-, one has to pay Rs.36586/-.  This has been the case for the past few years without being questioned by any one. Is there any iota of logic in this?

Steep rise in premium:

In the year 2015, when the scheme commenced, the premium for a floater policy of Rs.3 Lakhs for workmen was Rs.5670/- : whereas it is Rs.41334/- today. Similarly in the year 2015, the premium for a floater policy of Rs.4 Lakhs for officers was Rs.7559/- : whereas it is Rs.57808/- today. Both the premiums have increased by more than 7 times in 7 years.  Compared to last year, this year’s premium has been escalated by more than 30%. It is more than 3 months’ pension for many pensioners in the lower cadre and who retired earlier.  How can they afford to pay this? As a result, thousands of retired employees have been going out of this scheme unable to bear the sharp and steep increase in the premium. If this situation continues, in a few years almost all would leave this scheme.

What is the solution?

Reducing the room rent, cutting the reimbursement quantum, excluding certain diseases etc. and thereby trying to reduce the premium is not the solution. The only solution is that as in the case of employees and officers in service, the Banks have to bear the premium for the base policy of the retired employees and officers. The premium for the top-up policy can be borne by the retired employees and officers. That is the only solution to safeguard the health of the elders and to avoid their pre-mature death.


  1. Hardships can be felt only by the retirees Not knowing what to do If the employer bears the basic premium then only some solution could be found

  2. We congratulate Bank Worker’s Unity and thank that bringing out the enormous economic burden every year the retired workmen or officers would bear.
    Secondly the management or the IBA should realise that extension of health care expenditure by the individual management would not be a bigger task.

  3. Yes it is justified to demand the bank management to bear the premium on the basic coverage amount.Even when the UBFU written to IBA, there was no reply till date. Even federal bank management is bearing that amount to their retirees.

  4. Excellent and elaborately discussed. God only has to come to our risk, if responsible persons are not dealt with properly.

  5. Government and Bank Management discourage the retired people and hope that they are not eligible to live beyond 60 yesrs

  6. Banks should come forward to subsidise premium of the Retirees to some extent if not full. Kudos to Federal Bank!

  7. Presentation is true !
    But I already have been edged out of the IBA scheme. Now I am under Arogya Raksha.

  8. Remarkable suggestion that the base premium have to bear the bank.This will give relief to the retirees. Unions have to exert pressure to the banks and IBA

  9. My only question is WHY IBA inbetween?They spoiled our wage revision in Bipartite settlements more or less everytime,they brought out their hidden agendas mainly by fooling lakhs of so called educated/white collored professionals(Bank employees)With the support of handfull of union officebearers mainly bringing in the concept of f special pay & reducing the pension plus terminal benefits forever during 10 BPS I feel.FIrst IBA Has to be winded off.Only employees representatives & management’s representatives from major banks should sit & decide about welfare of employees/ retired employees.

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