New Delhi: State Bank of India (SBI) has entered into a Memorandum of Understanding (MoU) with Indian Railways to enhance insurance coverage for railway employees maintaining salary accounts with the bank. The accidental death insurance benefit has now been raised to Rs 1 crore, a significant increase compared to the current Central Government Employees Group Insurance Scheme (CGEGIS), which provides coverage of Rs 1.20 lakh, Rs 60,000, and Rs 30,000 for Group A, B, and C employees, respectively.
The agreement also extends natural death insurance coverage of Rs 10 lakh to all railway employees who hold only a salary account with SBI, without requiring premium payments or medical examinations. This development is expected to benefit close to 7 lakh railway employees who currently bank with SBI.
In addition to accidental and natural death coverage, the MoU introduces several complementary provisions. These include air accident insurance cover of Rs 1.60 crore, with an additional coverage of up to Rs 1 crore through the RuPay debit card; personal accident cover of Rs 1 crore in cases of permanent total disability; and up to Rs 80 lakh for permanent partial disability.
The revised structure of insurance benefits represents a notable shift in employee welfare measures, moving beyond the earlier CGEGIS framework. By broadening the scope of financial protection, the MoU aims to address the risks faced by railway staff, particularly frontline personnel. The agreement underlines a growing focus on strengthening social security frameworks for government employees through institutional partnerships.
Also Read: Â
SBI, AFD Sign €100 Million Green Credit Agreement at GIFT City
Discussion about this post