New Delhi: In a major step toward employee welfare, the State Bank of India (SBI) has signed a Memorandum of Understanding (MoU) with Indian Railways to enhance insurance benefits for railway employees. The agreement significantly increases accidental death coverage for staff maintaining salary accounts with SBI.
Major Increase in Insurance Coverage
Under the new arrangement, accidental death insurance has been raised to ₹1 crore. This marks a sharp increase from the existing coverage under the Central Government Employees Group Insurance Scheme (CGEGIS), which currently provides ₹1.20 lakh for Group A, ₹60,000 for Group B, and ₹30,000 for Group C employees.
Additionally, all railway employees holding only a salary account with SBI will now be eligible for natural death insurance coverage of ₹10 lakh. This benefit comes without any premium payment or medical examination.
Wide Reach Across Indian Railways Workforce
Nearly seven lakh railway employees currently maintain salary accounts with SBI, making this initiative a major milestone in strengthening social security. Officials highlighted that the agreement has been designed with a strong welfare focus, especially benefiting frontline Group C employees.
Complimentary Insurance Benefits
The MoU includes additional insurance covers, such as:
- Air Accident (Death) Insurance: ₹1.60 crore, plus up to ₹1 crore through the RuPay Debit Card.
- Personal Accident (Permanent Total Disability) Cover: ₹1 crore.
- Personal Accident (Permanent Partial Disability) Cover: Up to ₹80 lakh.
Strengthening Employee Welfare
The partnership between SBI and Indian Railways underscores a compassionate, employee-centric approach. By extending comprehensive insurance benefits, the initiative is expected to provide greater financial security to staff and their families, reinforcing the government’s commitment to workforce welfare.
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