Ashwini Vaishnaw Announces ₹1 Crore Accidental Insurance Cover for Railway Staff

New Delhi – In a landmark development for employee welfare, Indian Railways, one of the largest transport networks in the world, has signed a Memorandum of Understanding (MoU) with the State Bank of India, the country’s biggest public sector bank. The agreement was formalized in the presence of Union Minister for Railways, Information & Broadcasting, and Electronics & Information Technology, Shri Ashwini Vaishnaw. The occasion was also graced by the Chairman of the Railway Board, Shri Satish Kumar, and the Chairman of SBI, Shri C.S. Setty, reflecting the importance attached to this initiative.

Under the provisions of this MoU, the insurance benefits available to railway employees maintaining salary accounts with SBI have been significantly enhanced. The most notable change is the increase in accidental death insurance, which has been raised to ₹1 crore. This marks a substantial improvement compared to the existing Central Government Employees Group Insurance Scheme (CGEGIS), which currently provides ₹1.20 lakh for Group A, ₹60,000 for Group B, and ₹30,000 for Group C employees.

In addition to this, all railway employees holding salary accounts with SBI will now be entitled to a natural death cover of ₹10 lakh. This benefit comes at no extra cost, requiring neither premium payments nor medical examinations. With nearly seven lakh railway employees having salary accounts in SBI, this measure represents a transformative step towards strengthening the financial security of the workforce.

The agreement also extends further protections for employees through complimentary insurance covers. Railway staff will now receive an air accident insurance benefit of ₹1.6 crore, with an additional cover of up to ₹1 crore available through the RuPay Debit Card facility. Furthermore, provisions have been made for a personal accident insurance cover of ₹1 crore in case of permanent total disablement and up to ₹80 lakh in cases of permanent partial disability.

This employee-centric agreement has been described as compassionate and forward-looking, especially in light of the risks and challenges faced by frontline railway staff, particularly those in Group C. The collaboration between Indian Railways and SBI is more than a financial arrangement—it symbolizes a shared commitment to safeguarding employees and their families, providing them with much-needed peace of mind and security.