Mumbai: Retired public sector bank staff will see a premium increase in their group by 40% after an increase in the claim ratio.
The Bank India Association (IBA) has been communicated to its members that it has received a revised quote, following the request of the proposal that floated by the bank’s body.
“The claim ratio caused by 147.2% for pensioners without domiciley policies and 163.3% for retirees with domiciliar policies (on 31 July 2021) have resulted in a premium increase for policy updates than last year,” said Iba.
The national insurance company based in Kolkata is understood has continued with the account.
The domiciliar cover refers to the extension of the policy to close care at home.
For retired bank officers, the premium for the cover of Rs 4 Lakh without Domisiliar has risen 34% to RS 36,652 from Rs 27,342.
For retired workers, it costs up 40% to RS 28.715 from RS 20,508 for the cover of Rs 3 Lakh.
With the domiciliary option, the cost rises lower.
For retired workers, the same cover costs are now RS 55,175, which is 8.4% higher than Rs 50,893 years ago and for officers, it was 7.5% higher at Rs 72, 917 from Rs 67,853 years ago.
Iba negotiated group insurance on behalf of retired employees who were required to pay premiums.
The National Insurance Company has offered a lower premium cover for insured low-smIk and for policies where retirees do not have a living or retired partner who survives partners.
Insurers say the cost of most group policies that have emerged for updates after the second wave has increased due to higher payments.