New Delhi: Indian Railways and the State Bank of India have signed a Memorandum of Understanding to provide enhanced insurance benefits for railway employees who maintain their salary accounts with the bank. The agreement was signed in the presence of Railway Minister Ashwini Vaishnaw, Railway Board Chairman Satish Kumar, and SBI Chairman C.S. Setty.
Under the new arrangement, accidental death insurance for employees has been raised sharply to ₹1 crore. Currently, under the Central Government Employees Group Insurance Scheme (CGEGIS), the cover stands at ₹1.20 lakh for Group A, ₹60,000 for Group B, and ₹30,000 for Group C employees.
The MoU also provides natural death insurance of ₹10 lakh for all employees with an SBI salary account. This benefit does not require employees to pay any premium or undergo a medical examination.
Nearly seven lakh railway employees have salary accounts with SBI. Officials said the new agreement reflects a significant step towards employee welfare, offering exclusive benefits particularly for frontline Group C workers.
Some of the complimentary insurance benefits under the MoU include air accident death cover of ₹1.60 crore plus an additional cover of up to ₹1 crore through the RuPay debit card, personal accident (permanent total disablement) cover of ₹1 crore, and personal accident (permanent partial disability) cover of up to ₹80 lakh.
BI Bureau
