Enhanced Insurance Coverage
Under the new arrangement, accidental death insurance coverage has been increased to ₹1 crore. Previously, employees were covered under the Central Government Employees Group Insurance Scheme (CGEGIS), which offered comparatively modest benefits of ₹1.20 lakh for Group A, ₹60,000 for Group B, and ₹30,000 for Group C employees.
Additionally, all railway employees maintaining a salary account with SBI will now receive ₹10 lakh natural death insurance cover—without any premium payment or medical examination. This inclusion makes the scheme not just employee-friendly but also financially stress-free.
Comprehensive Accident Protection
The MoU extends beyond basic accidental death coverage. Employees will be eligible for ₹1.6 crore air accident death insurance, coupled with an additional ₹1 crore cover through RuPay Debit Card. In case of severe injuries, Permanent Total Disablement will attract an insurance payout of ₹1 crore, while Permanent Partial Disability cover goes up to ₹80 lakh.
These expanded benefits underline a comprehensive approach, offering security against both fatal accidents and life-altering injuries.
Impact on Railway Workforce
With nearly 7 lakh railway employees holding salary accounts with SBI, this MoU represents one of the largest employee insurance cover arrangements in India. The scheme is particularly significant for frontline Group C staff, who often face greater occupational risks in day-to-day operations.
Railway officials emphasized that the partnership reflects a compassionate and employee-centric vision. It ensures financial stability for families in times of crisis and addresses the long-pending demand for enhanced social security measures within the sector.
Strengthening Institutional Partnerships
This collaboration showcases how India’s largest public sector bank and the nation’s railways can join forces to deliver tangible benefits for employees. It also reinforces SBI’s role as a banking partner for millions of government workers, building on its longstanding association with the Indian Railways.
