ST Bank accident insurance renewal questioned, Barge seeks probe into Rs 5.96 crore payment

A new controversy has erupted over the renewal of the accident insurance policy for member employees of ST Bank. Shrirang Barge, general secretary of the Maharashtra ST Karmachari Congress, suspects large-scale financial irregularities in the scheme. He alleges that the terms and conditions were not followed while renewing the policy, and has demanded an inquiry into the entire transaction.

According to Barge, the accident insurance policy for ST Bank's member employees has been renewed for 2026-27. Zuno General Insurance Limited was given an extension of the term for this. Barge alleges that the rules and conditions were not followed in extending the term. He also said no e-tender process was held for it.

Rs 5,96,49,710 has been paid to the insurance company through RTGS. Barge says the amount is more than necessary. He alleges that such a large sum was spent for suspicious commission transactions.

Barge also pointed out that the financial burden of the scheme falls on the employees themselves. Seventy-five per cent of the premium is deducted from members' Rupee Fund accounts, while the bank pays the remaining 25 per cent. He says a large part of the cost of the insurance scheme is thus being met from the employees' own money. He has instead demanded that the accident insurance cover for members be raised to Rs 25 lakh.

ST Bank has about 62,000 members across the state. Under the scheme, the family of a member who dies in an accident is given financial help. According to Barge, about 10 members died in accidents on average last year, and insurance claims of around Rs 1 crore were made for them.

Barge has raised questions because a premium of Rs 5.96 crore is now being paid to renew the same scheme. He says that in fixing the premium, the average of three years, not just one year's figures, should have been considered. In his view, the premium should have been set on the assumption of about 15 accident deaths a year.

Barge has asked why such a large sum was paid to Zuno General Insurance, who took the decision, and why no tender process was held when the policy term was extended. He warned that such a suspicious transaction would not be tolerated in a bank run on the hard-earned money of its members.

He said letters have been sent to the Cooperation Department and the police Economic Offences Wing seeking an inquiry. The official position of the bank administration and the insurance company on the allegations about the premium amount, the tender process and the extension given to the company was not available.