UFBU CIRCULAR : Our Unions and members are aware that we have been
discussing with the IBA regarding revised norms for grant of Performance
Linked Incentive (PLI) as well as the Group Medical Insurance Policy for in-
service employees/officers and for the retirees. Discussions were held on 18-
4-2024, 13-5-2024, 15-6-2024 and recently on 2-7-2024. Arising out of
these discussions, Minutes have been signed between IBA and UFBU. We
give below the details of the Minutes.
A) Performance Linked Incentive Scheme (PLI):
From the Financial Year 2023-24, each Bank can decide any of the following
parameters for granting the PLI .
- CASA, 2. NPA, 3. SMA, 4. Non-Interest Income, 5. total business,
- profitability, 7. ROA/ROE, 8. Government schemes.
Banks can decide the matrix from amongst the above parameters looking to
their business potential, priorities, business plan, etc.
Instead of the present PLI of 5 days, 10 days and 15 days, PLI can be
granted from 1 day wage to 15 days wage, i.e. 1,2,3,4 ………. 11,12,13,14 or
15 days.
B) Renewal of Group Medical Insurance Policy for in-service
employees/ officers and for retirees:
Presently there are two separate policies, one for the in-service employees/
officers/their dependents and the other for the retirees. The premium is
being fixed up based on the number of insured persons and Incurred Claim
Ratio. Since the number of insured persons from the retirees have been less
and the ICR has been more, the premium amount has been increasing.
Hence we have been demanding a combined Policy for the in-service
employees and retirees.
We are happy to inform that this has been agreed now and the policy to be
renewed for the year 2024-25 would be a combined Policy. This is expected
to rationalize, cross-subsidise and reduce the premium for the retirees.
There would be common coverage of sum insured i.e. Rs. 3 lacs for in-service
Award staff and retirees and Rs. 4 lacs for in-service officers/retirees.
The benefits under this Policy including bed charges, etc. would be the same
for in-service staff and for the retirees except the following which would be
applicable only for the in-service staff.
a) Coverage of Domiciliary treatment
b) Ex-gratia for critical illness
c) Buffer cover of Rs. 100 crores.
Retirees who are not members of this Policy at present would be give an
opportunity to join this Policy.
In-service employees/officers will be permitted to add dependents anytime
during the year on account of marriage and birth of a child.
Other changes/updation/substitution in the dependents would be permitted at
the time of annual renewal of the Policy.
A Committee would be set up by IBA to monitor the performance of the TPAs
and to recommend change of TPAs, de-listing of hospitals, etc.
Efforts would be taken to synchronise and have a common commencement
date for the Medical Insurance Policy for in-service staff and retirees.
Facility of offer of top-up benefit would be available.
Based on the above, IBA would invite quotations from the Insurance
Companies and finalise the bid.
C) Discussions on other Residual Issues: IBA agreed to fix up the
meeting at the earliest.