SBI Offers ₹1 Crore Accidental Cover for Railway Employees

The Indian Railways (IR) and the State Bank of India (SBI) have signed a landmark Memorandum of Understanding (MoU) to provide an enhanced Railway Salary Package (RSP) for railway employees. The agreement, aimed at strengthening employee welfare and safety, includes a ₹1 crore accidental death insurance cover for personnel holding salary accounts with SBI. The MoU reflects a significant step in securing the well-being of railway staff and enhancing their financial protection.

MoU Signing Ceremony

The MoU was officially signed on Monday, September 1, in the presence of top dignitaries:

• Ashwini Vaishnaw, Minister for Railways, Information & Broadcasting, and Electronics & Information Technology

• Satish Kumar, Railway Board Chairman

• C.S. Setty, Chairman of SBI

The agreement underlines the commitment of both institutions to employee-centric welfare programs and demonstrates a collaborative effort to enhance safety and financial security for railway personnel.

Enhanced Insurance Benefits

Under the new arrangement, railway employees with SBI salary accounts receive significantly improved insurance coverage. Key highlights include:

• Accidental Death Coverage: Enhanced to ₹1 crore, compared to the previous coverage under CGEGIS, which ranged from ₹30,000 to ₹1.20 lakh based on employee groups (A, B, C).

• Air Accident Insurance: Coverage of ₹1.60 crore, plus an additional up to ₹1 crore on RuPay debit cards.

• Personal Accident Insurance:

  • Permanent Total Disablement: ₹1 crore coverage

  • Permanent Partial Disability: Coverage of up to ₹80 lakh

• Natural Death Insurance: Free coverage of ₹10 lakh for employees with SBI payroll accounts, requiring no premiums or medical tests.

These enhancements mark a substantial upgrade in protection for railway employees, especially frontline staff, providing peace of mind and financial stability in case of emergencies.

Impact on Railway Employees

With nearly 7 lakh railway employees maintaining salary accounts with SBI, this MoU benefits a large segment of the workforce. The insurance scheme is particularly employee-centric, catering to Group C personnel and other frontline staff who are often exposed to operational risks.

The upgraded benefits reflect a caring and constructive partnership between Indian Railways and SBI, ensuring that employees are supported in terms of safety, health, and financial security.

Employee-Centric Features

Some of the notable features of the enhanced Railway Salary Package include:

• Exclusive Benefits: Only employees with SBI salary accounts are eligible for these special insurance schemes.

• No Premiums Required: Coverage is provided at no additional cost to employees.

• Comprehensive Protection: Offers protection against accidental death, air accidents, permanent total and partial disability, and natural death.

• Simplified Process: Employees do not need medical examinations to avail themselves of these benefits, streamlining access to coverage.

These features demonstrate a thoughtful approach toward employee welfare, focusing on accessibility, inclusivity, and comprehensive protection.

Government and Institutional Support

The Ministry of Railways emphasized that the MoU is designed to strengthen employee welfare programs while enhancing operational security. By collaborating with SBI, one of India’s largest banking institutions, Indian Railways ensures that:

• Employees are financially secure in case of untimely death or disability.

• Insurance schemes are tailored to meet the needs of different employee groups.

• Frontline staff, who face higher occupational risks, are given priority protection.

This initiative sets a benchmark for employee welfare programs in public sector institutions.

Conclusion

The MoU between Indian Railways and SBI marks a significant milestone in protecting railway employees’ lives and financial well-being. With ₹1 crore accidental death coverage, free natural death insurance, and enhanced personal accident benefits, railway staff now enjoy one of the most comprehensive protection schemes in the country. This employee-focused initiative highlights the importance of partnerships between public sector organizations to strengthen welfare, safety, and financial security for essential workers.