MUMBAI: Retired public sector banks’ staff will see their group mediclaim premium increase by as much as 40% following an increase in the claims ratio. The Indian Banks’ Association (IBA) has communicated to its members that it has received the revised quotes, following a request for proposals floated by the bank’s body.
“High incurred claim ratio of 147.2% for retirees without domiciliary policy and 163.3% for retirees with domiciliary policy (as on July 31, 2021) have resulted in the increase in premiums for renewal of policies compared to last year,” the IBA said. Kolkata-based National Insurance Company is understood to have continued with the account. Domiciliary cover refers to the extension of the policy to cover treatment at home.
For retired bank officers, the premium for Rs 4 lakh cover without domiciliary has gone up 34% to Rs 36,652 from Rs 27,342. For retired workmen, the cost has gone up 40% to Rs 28,715 from Rs 20,508 for a Rs 3 lakh cover.
With the domiciliary option, the cost has gone up lower. For retired workmen, the cost of the same cover is now Rs 55,175 which is 8.4% higher than Rs s 50.893 last year and for officers, it is 7.5% higher at Rs 72, 917 from Rs 67,853 last year.
IBA negotiates group insurance on behalf of retired employees who are required to pay the premium. National Insurance Company has offered lower-premium cover for lower-sum insured and for policies where the retiree does not have a surviving spouse or the retiree is survived by a spouse.
Insurers say cost of most group policies that have come up for renewal after the second wave has seen an increase because of a higher payout.
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