The Indian Railways on Monday signed a Memorandum of Understanding (MoU) with the State Bank of India (SBI) to extend substantial insurance benefits to its employees and their families. Signed in the presence of Union Railway Minister Ashwini Vaishnaw, the agreement ensures that employees maintaining salary accounts with SBI will now receive accidental death insurance coverage of Rs 1 crore. This marks a huge jump from the current coverage under the Central Government Employees Group Insurance Scheme (CGEGIS), which offered Rs 1.20 lakh for Group A, Rs 60,000 for Group B and Rs 30,000 for Group C employees.
Natural death insurance without premium
As part of the MoU, all railway employees with SBI salary accounts will also be entitled to natural death insurance of Rs 10 lakh. Notably, this benefit comes without any premium payments or medical examinations, making it an employee-friendly scheme designed to offer peace of mind to railway families. "Additionally, all railway employees holding only a salary account with SBI will now be eligible for natural death insurance coverage of Rs 10 lakh without the need for paying any premium or undergoing any medical examination," a press note issued by the Railways Ministry said.
Wide coverage across the workforce
With nearly 7 lakh railway employees having their salaries routed through SBI, this initiative is set to benefit a vast segment of the workforce. The Railways Ministry described the agreement as a compassionate and employee-centric measure.
Additional insurance benefits
Beyond the Rs 1 crore accidental cover, the MoU also provides several complementary insurance protections. These include an air accident death cover of Rs 1.60 crore plus an additional Rs 1 crore on RuPay debit cards, personal accident permanent total disability cover of Rs 1 crore, and personal accident permanent partial disability cover of up to Rs 80 lakh.
Focus on frontline personnel
The ministry emphasised that this agreement is designed to benefit all categories of employees, especially frontline staff in Group C, who often face higher occupational risks. By enhancing financial security, the MoU aims to support the workforce that forms the backbone of the Indian Railways, the ministry added.
(With inputs from PTI)
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