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Tuesday, August 18, 2015

An article on IBA's Medical Insurance scheme for Bank staff and retirees



We reproduce below an article by Shri R.K. Pathak (Courtesy: Bank Pensioner)


In pursuance of the 10th Bipartite Settlement / Record Note and communication of IBA dated 29/06/2015 to the Member Banks, Public Sector Bank’s have started notifying on their web site a Medical Insurance Scheme which covers both the existing employees as well as the retirees.




By this time all the retirees & Retiree organization are fully aware about the sanctity of “Record Note” dated 25/05/2015 & the role of IBA in this regard.

Now once again IBA has introduced the Medical Insurance Scheme for existing staff as well as retirees and directed the Member Banks as under:-

“Further it has been agreed that the said medical insurance scheme will be extended to the existing retirees, subject to the payment of the agreed insurance by them”.


This circular is issued by Shri. K UnniKrishnan, Dy.Chief Executive of IBA. [Copy].
In this context, attention of Retirees & Retirees organization is invited to the communication of DFS No.F.No.14/7/92-IR(Vol-II)dated 24/02/2012 addressed to Shri K Unnikrishnan, Deputy Chief Executive, IBA Mumbai, wherein at Para 2, Shri K Unnikrishnan, Deputy Chief Executive, IBA Mumbai was advised as under:-

“2. It is further stipulated, that:
(i) No cash payments shall be made to employees except for medical and  educational purposes.

(ii) Banks may consider the option of Group Insurance Policies for both serving and retired employees instead of direct payment of benefit from the Fund.

The Copy of the DFS circular is attached herewith for ready reference.
It is clear from the above directives to IBA, particularly Shri. K UnniKrishnan, Dy.Chief Executive of IBA, the medical insurance scheme is formed as a part of settlement,for retirees not only , totally in disregard to the Directives of DFS, GOI but also reflecting the attitude of IBA that they are above the DFS & GOI & have powers to overrule the instructions. Its immaterial to raise the issue of role of UFBU in the matter.

In this context, though IBA is not bound to follow the directives of DFS, GOI , BUT the Managing Director, officers & employee of the Bank (that includes CMD/ ED / GM ) are Public Servant under section 21 of the Indian Penal Code of 1860 and are bound to follow the directives of GOI and not under obligation to follow illegal advice given by the IBA i.e.“ Voluntary Association of Management of Bank”.
Here it is appealed to retirees & retiree organization to bring the directives of DFS to the notice of Managing Director of the Bank and ensure that entire premium is debited to welfare fund, as :-

1) The Appointment of General Manger’s as [Board Member] MD / ED in the Bank is only after clearance of DFS/ GOI & is a fresh appointment and also at the mercy of DFS/ GOI and extension is totally at the discretion of GOI ( It is to be noted that PNB CMD was not given Extension) and the acting at the advice of IBA will be against their own interest besides retirees.

2) Being Public Servant, they are under obligation to follow the Directives of DFS & Not illegal advice of IBA & implementing the IBA directives, despite bringing the directives of DFS will lead to “ Intentional Omission” on their part causing wrongful loss to Retirees.

3) It is also worthwhile to draw the attention of Board Members about Policy of GOI, about the changes in appointment of Board Member & introducing professionals from private sector to manage PSB, as current Board Members acted at the instruction of IBA without verifying its sanctity & strictures from the judiciary.

Hope the information will help you to discuss with Bank Management to ease the financial burden of retirees.