Indian Railways and SBI Sign MoU for Enhanced Insurance Benefits

Railway Employees to Get ₹1 Crore Accident Cover and More Under New Pact

Key Points:

• MoU signed between Indian Railways and State Bank of India
• Accidental death cover raised to ₹1 crore for SBI salary account holders
• Additional air accident and disability insurance benefits introduced

JAMSHEDPUR – Indian Railways and the State Bank of India signed a Memorandum of Understanding on September 1, 2025, to provide enhanced insurance coverage for railway employees with SBI salary accounts. The ceremony was attended by Railway Minister Ashwini Vaishnaw, Railway Board Chairman Satish Kumar, and SBI Chairman C.S. Setty.

The agreement significantly improves accidental death benefits. Employees with SBI salary accounts will now receive ₹1 crore coverage. Earlier, the Central Government Employees Group Insurance Scheme provided only ₹1.20 lakh, ₹60,000, and ₹30,000 for Group A, B, and C staff respectively.

Moreover, all eligible employees will receive a natural death insurance cover of ₹10 lakh. Notably, no premium or medical test is required for this coverage. With around 7 lakh railway employees maintaining salary accounts in SBI, the move is expected to benefit a large workforce segment.

Meanwhile, the pact also introduces several additional covers. These include an air accident death cover of ₹1.6 crore plus up to ₹1 crore on the RuPay debit card. In addition, personal accident coverage has been extended to ₹1 crore for permanent total disablement and up to ₹80 lakh for partial disability.

Officials highlighted the employee-centric nature of this initiative. A senior official said, “This MoU is a compassionate step, aimed particularly at supporting frontline railway personnel in Group C and others.”

Insurance Coverage Highlights Under MoU: