Wednesday, 29 November 2017

Enhancement of SA to Rs 40lacs & 50lacs ----------- Elucidations,in-depth analysis

Dear Sri Mahadevan, 
1)Many thanx for ur lucid elucidation of what, why & how of choosing/not choosing  enhanced SA Rs 40 lacs & Rs 50 lacs

2)As you  rightly say,what they want,New India tries to accomplish through the medium of LIC without LIC protecting its own employees & Pensioners 

NI Insce Co was happy that LIC never raised any suggestion for improvement.

LIC did not even touch any Pensioners Fedns suggestions, many worthwhile & waiting for immediate redressal of grievances, deficiencies & other improvements/2 years before, NI was happy  to increase Premium by 43 %, merciless indeed.

Chief OS Mr Nadkarni ,it seemed told SZO OS dialogue, CO could not utilise,but cwertainly good improvements will come in ensuing year 2018-19

3)Contrary to general belief or expectations on Applications for Enhanced SA Rs 40 lacs ,50 lacs or other increases within lower limits, I gather many many Applications are received  in ZO, DO I & DO II Chennai.They say last one week, it will rise still more substantially.

It is said that increase in premium for Rs 40 lacs & Rs 50 lacs is not heavy but moderate.Also IT concessions under Sec 80D ,small relief will come. 

4)Equally, when I pestered,I am informed that last year, the Number of cases where Limits of compulsory SA Rs 3,4 or 6 lacs was exhausted ,& SA had to be drawn from balance in Optional SA  was ONLY 4 for those opted for  Rs 20 lacs & in r/o those opted for Rs 25 lacs ,it was also a mere 3.

It may be true that a large number  will be from Employee cadres,but it looks many pensioners have also opted.

5)You may be well aware that Employees were being given 75 % Subsisdy, but after  prolonged & mighty efforts ,my persistent talks & emails with then EDP Sri Kamaljit Sahay & MD Sri AKDasgupta conveying in forceful terms, piecemeal reductions of premium by 2 or 3 % cannot cure the malady,but a discretionary & deserving SAME Subsidy as was  being then offerred to employees be given & also effort  & fup thro Court case in Ahmedabad by Sri GTParekh & above all, the genial & empathetic MD who had the etiquette & courtesy to telephone me immediately after May 2010 Board Meeting that it is approved.I profusely & heartily thanked MD for his gracious desire to inform such a vital decision of tremendous import to ALL pensioners 

Greetings & warm regards,



On Saturday, November 25, 2017, 6:25:38 PM GMT+5:30, Colinjivadi Mahadevan <> wrote:

My view is as follows:

1.Theoretically in a family floater cover there may be a possibility of a need for a Rs 40 lk-50 lks cover  for everybody.But it is an uncertainty for the pensioners(unless there are already those in need based on their present condition) and a near certainty for the insurer.In the absence of increase in compulsory cover limit providing for higher subsidy than at present,one has to take his own individual decision whether to opt for higher cover or not.But one hidden risk is for prospective family pensioners who are presently coming under Table B as dependents who will come under Table A with a threefold increase in premium in the face of a 70 % reduction in the family pension received on  unfortunate death of the regular pensioner.

There is a marginal relief available for opting for reduced insurance cover at the immediately lower level of sum insured.

2.Sound reasons for opting for Rs 40 lks are present state of  health if it shows an indication of possible high cost Hospitalisation treatment of a magnitude of Rs 40 lks or more.

If one feels confident that a calculated risk can be taken based on satisfactory health enjoyed at present,one need not opt for higher cover.

Majority of pensioners not opting for higher cover will give a strong message to LIC that there may not be takers for this offer of increase unless subsidy is increased commensurately.
Kind regards.

C H Mahadevan

On Saturday, November 25, 2017, Seetha And Kishore <> wrote:

Respected Sir, 
Is it advisable to tell the pensioners to to opt for the highest floater sum insured? 
In fact it is upto the individual to decide to increase the sum insured depending upon his/her claim experience. 
DO we have any case where a pensioner exhausted the insured sum during the current or last financial year and approached LIC or any Pensioners' Association for financial assistance? 
Neither LIC nor the NIA has provided the cases where the pensioners have exhausted their  floater sum insured during the policy year. 
Did NIA provide the total amount of mediclaim paid to the Pensioners and the employees separately vis a vis the premium collected? 
Shri C S Murty has made some study and submitted to the Chairman-LIC and questioned the rationale of need for increased floater Sum Insured. 

With high regards, 

On Friday, November 24, 2017, 12:38 AM, Seetha And Kishore <> wrote:

Dear Sri Sahni 

1) What is the right way of thinking whether Pensioner has to opt for Rs 40 lacs or 50lacs,when he has reasonable OSA of above 15 or 20 lacs

2)What are the sound reasons if one wishes to opt for Rs 40lacs. 
What else are the reasons why he need not worry to opt. for higher OSA



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