Indian Railways and State Bank of India (SBI) have signed a landmark Memorandum of Understanding (MoU) to significantly enhance insurance benefits for railway employees who maintain salary accounts with the bank .
Under the new framework, employees will now be eligible for accidental death cover of ₹1 crore, a steep jump from the current coverage of ₹1.20 lakh, ₹60,000 and ₹30,000 for Group A, B, and C staff under the existing Central Government Employees Group Insurance Scheme (CGEGIS).
Additionally, railway employees with SBI salary accounts will receive natural death insurance cover of ₹10 lakh, with no premium payment or medical check-up required.
Key benefits under the MoU
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Air Accident Insurance (Death) Cover: ₹1.6 crore, plus an additional up to ₹1 crore on RuPay Debit Card.
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Personal Accident (Permanent Total Disablement) Cover: ₹1 crore.
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Personal Accident (Permanent Partial Disability) Cover: Up to ₹80 lakh.
The agreement, described as employee-centric and compassionate, particularly benefits frontline Group C railway personnel and other staff. With nearly 7 lakh railway employees maintaining salary accounts with SBI, the deal marks a significant step in employee welfare.
The signing ceremony was attended by Railway Minister Ashwini Vaishnaw, Railway Board Chairman Satish Kumar, and SBI Chairman C.S. Setty.
