In the latest development, the Indian Railways and the State Bank of India (SBI) signed a Memorandum of Understanding (MoU) on Monday to provide better insurance benefits for employees. This means that Railway employees with salary accounts in SBI will now receive significantly higher insurance coverage than before, ensuring greater financial protection for their families in case of accidents or unfortunate events.
It is to be noted that the signing took place in the presence of Railway Minister Ashwini Vaishnaw, Railway Board Chairman Satish Kumar, and SBI Chairman C.S. Setty. This agreement marks a major move for employee welfare.
New Scheme Offers Higher Accident Insurance Coverage
Under the MoU, Railway employees will receive an air accident insurance (death) cover of Rs 1.6 crore. Additionally, employees will enjoy an extra cover of up to Rs 1 crore through their RuPay Debit Card. In case of accidental death, employees will get insurance benefits up to Rs 1 crore. This amount is a major increase compared to the earlier Central Government Employees Group Insurance Scheme (CGEGIS), which provided only Rs 1.20 lakh for Group A, Rs 60,000 for Group B, and Rs 30,000 for Group C employees. The new scheme ensures stronger support for staff and their dependents.
Natural Death Insurance Introduced Without Premium
The MoU also introduces a natural death insurance cover of Rs 10 lakh for all Railway employees who hold salary accounts with SBI. This coverage will be provided without any premium payment or medical test.
Nearly 7 lakh Railway employees currently maintain their salary accounts with SBI, meaning a significant section of the workforce will benefit from this new welfare measure. This initiative reflects a major shift in how employee welfare is addressed by Indian Railways in partnership with the country’s largest public sector bank.
Coverage Includes Disability Benefits for Employees
The agreement also provides additional disability benefits to ensure financial stability for employees in case of accidents. The scheme includes a complimentary insurance cover of Rs 1 crore for permanent total disability and up to Rs 80 lakh for permanent partial disability.
These provisions are designed to protect employees and their families in situations where accidents result in long-term disabilities. Such benefits highlight the importance of securing the lives of railway employees, who serve as the backbone of the country’s rail network and work under challenging conditions.
Officials highlighted that this MoU is especially beneficial for frontline railway employees in Group C, who are directly involved in running and maintaining the vast railway system. By offering enhanced accident, disability, and natural death coverage, the Indian Railways and SBI have demonstrated a strong employee-focused approach.
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Swastika Sruti is a Senior Sub Editor at NewsX Digital with 5 years of experience shaping stories that matter. She loves tracking politics- national and global trends, and never misses a chance to dig deeper into policies and developments. Passionate about what’s happening around us, she brings sharp insight and clarity to every piece she works on. When not curating news, she’s busy exploring what’s next in the world of public interest. You can reach her at [swastika.newsx@gmail.com]
