Daijiworld Media Network - New Delhi

New Delhi, Sep 1: In a significant move aimed at enhancing the welfare of railway employees, Indian Railways and the State Bank of India (SBI) have inked a landmark Memorandum of Understanding (MoU) that promises substantially improved insurance coverage for staff members. The agreement was signed in the presence of Railway Minister Ashwini Vaishnaw, Railway Board Chairman Satish Kumar, and SBI Chairman C.S. Setty.

This new insurance scheme marks a major upgrade in employee protection, especially for those who have their salary accounts with SBI. One of the standout features of the MoU is the provision of an air accident insurance cover worth Rs 1.6 crore. In addition, employees will receive an extra coverage of up to Rs 1 crore linked to their RuPay Debit Cards.

The scheme also dramatically raises accidental death benefits to as much as Rs 1 crore, a huge leap from the earlier Central Government Employees Group Insurance Scheme (CGEGIS) coverage that ranged between Rs 30,000 and Rs 1.20 lakh depending on employee groups (A, B, or C). Furthermore, natural death insurance coverage of Rs 10 lakh will be granted to all SBI salary account holders without any premium payment or medical examination.

Currently, around 7 lakh railway employees have their salaries routed through SBI, meaning a vast majority of the workforce stands to gain from this enhanced protection plan.

Additional perks include complimentary insurance covers—Rs 1 crore for permanent total disability and up to Rs 80 lakh for permanent partial disability caused by accidents.

Officials highlighted that this initiative reflects Indian Railways’ commitment to its workforce, particularly benefiting frontline Group C personnel, whose efforts are critical to maintaining the smooth operation of India’s extensive railway network.

This partnership with SBI demonstrates a progressive, employee-focused approach designed to offer greater financial security and peace of mind to railway staff across the country.