Indian Railways and SBI Sign MoU to Expand Insurance Benefits for Railway Employees.
MOUs and Agreement
On September 1, 2025, Indian Railways (IR) and the State Bank of India (SBI) signed a Memorandum of Understanding (MoU) in New Delhi to enhance insurance coverage for railway employees holding salary accounts with SBI. The agreement was formalized in the presence of Ashwini Vaishnaw, Union Minister of Railways, Satish Kumar, Chairman of the Railway Board, and C.S. Setty, Chairman of SBI.
-The MoU significantly raises the accidental death insurance benefit to ₹1 crore for all railway employees with SBI salary accounts. This is an increase from the earlier slabs of ₹1.20 lakh for Group A, ₹60,000 for Group B, and ₹30,000 for Group C, previously available under the Central Government Employees Group Insurance Scheme (CGEGIS).
- In addition to accidental death, the MoU introduces a natural death cover of ₹10 lakh, ensuring financial protection for employees’ families without requiring medical examinations or additional premium payments. This move is aimed at improving welfare measures for frontline staff and other railway personnel.
- Additional insurance covers under this MoU include air accident compensation of up to ₹1.60 crore, along with an added ₹1 crore coverage for employees holding RuPay Debit Cards linked to their salary accounts. These enhancements reflect a holistic approach towards employee safety and security.
Main Point :- (i) The agreement also incorporates provisions for personal accident insurance and permanent total disability benefits. Employees will now be covered up to ₹1 crore for personal accidents and up to ₹80 lakh in cases of permanent disability, extending wider protection in unforeseen situations.
(ii) This collaboration between IR and SBI represents a major welfare initiative for one of India’s largest workforce groups. By expanding insurance benefits, the Ministry of Railways aims to provide greater financial security to employees and their dependents while strengthening institutional cooperation between the Railways and India’s largest public sector bank.
Chairman : Challa Sreenivasulu Setty
Headquarter : Mumbai
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