New Delhi: The Indian Railways on Monday signed a Memorandum of Understanding (MoU) with State Bank of India to provide significant insurance cover for its employees and their families, an official statement said.
Under the MoU, signed in the presence of Railway Minister Ashwini Vaishnaw, employees who maintain salary accounts with SBI will get accidental death insurance of Rs 1 crore, a press note issued by the Railways Ministry said.
This is a significant increase from the current coverage of Rs 1.20 lakh, Rs 60,000, and Rs 30,000 for Group A, B, and C employees, respectively, under the Central Government Employees Group Insurance Scheme (CGEGIS).
Key Highlights of the MoU
- Accidental Death: Railway employees with a salary account at SBI are now eligible for an enhanced ₹1 crore accidental death insurance cover.
- Air Accident Death: In the unfortunate event of an air accident, the coverage increases to ₹1.6 crore, with an additional benefit of up to ₹1 crore available on their RuPay debit card.
- Permanent Disability: The MoU also includes significant coverage for disability:
- ₹1 crore for permanent total disability due to an accident.
- Up to ₹80 lakh for permanent partial disability.
This partnership is part of a compassionate, employee-centric initiative to provide exclusive and robust benefits, ensuring the well-being of railway personnel and their families.
A landmark Memorandum of Understanding (MoU) was signed today between two of India’s leading institutions – Indian Railways (IR), one the largest rail networks in the world, and the State Bank of India (SBI), the country’s largest public sector bank. The ceremony was honoured by the August presence of the Hon’ble Minister for Railways, Information & Broadcasting, Electronics & Information Technology, Shri Ashwini Vaishnaw; the Chairman, Railway Board, Shri Satish Kumar; and the Chairman, SBI, Shri C.S. Setty.
Under this MoU, insurance coverage for Railway employees maintaining salary accounts with SBI has been significantly enhanced. In case of accidental death, the insurance benefit has been increased to ₹1 crore, compared to the current coverage of ₹1.20 lakh, ₹60,000, and ₹30,000 for Group A, B, and C employees, respectively, covered under CGEGIS.
Additionally, all Railway employees holding only a salary account with SBI will now be eligible for natural death insurance coverage of ₹10 lakh—without the need for paying any premium or undergoing any medical examination.
With nearly 7 lakh Railway employees maintaining salary accounts with SBI, this agreement marks a major step towards employee welfare, reflecting a caring and constructive partnership between Indian Railways and SBI.
Some of the key complementary insurance covers under this MoU include: Air Accident Insurance (Death) Cover of ₹1.60 crore plus an additional up to ₹1.00 crore on RuPay Debit Card; Personal Accident (Permanent Total Disablement) Cover of ₹1.00 crore; and Personal Accident (Permanent Partial Disability) Cover of up to ₹80 lakh.
This MoU between two leading entities is employee-centric, compassionate, and designed to bring exclusive benefits to the workforce—especially frontline railway personnel in Group C and others.
