In a major step towards Railway employee welfare, Indian Railways has signed a Memorandum of Understanding (MoU) with the State Bank of India (SBI) to provide enhanced insurance benefits to employees maintaining their salary accounts with SBI.
The MoU was signed in the presence of Shri Ashwini Vaishnaw, Hon’ble Minister for Railways, Information & Broadcasting, Electronics & IT, along with Shri Satish Kumar, Chairman, Railway Board, and Shri C.S. Setty, Chairman, SBI.
This initiative aims to strengthen financial protection for Railway employees and their families, particularly frontline Group C personnel.
💰 ₹1 Crore Accidental Death Insurance Cover for Railway Employees
Table of contents
- 1 💰 ₹1 Crore Accidental Death Insurance Cover for Railway Employees
- 2 🌿 ₹10 Lakh Natural Death Insurance — No Premium Required
- 3 🧾 Full List of Insurance Benefits Under the MoU
- 4 👨✈️ MoU Benefits for Railway Employees
- 5 💬 Official Statement
- 6 🚆 Why This MoU Matters
- 7 📅 When Will the MoU Take Effect?
- 8 ❓ FAQs – Indian Railways & SBI MoU 2025
- 9 🏁 Conclusion
- 10 🔗 Related Railway Articles on Railadda
Under the new MoU, all Railway employees with SBI salary accounts will receive an accidental death insurance cover of ₹1 crore.
This is a massive increase compared to the previous coverage under CGEGIS, which offered:
- ₹1.20 lakh for Group A
- ₹60,000 for Group B
- ₹30,000 for Group C
This enhanced coverage demonstrates Indian Railways’ commitment to employee security and welfare.
🌿 ₹10 Lakh Natural Death Insurance — No Premium Required
Railway employees holding salary accounts with SBI will also receive a ₹10 lakh natural death insurance cover.
✅ No premium payment
✅ No medical tests
✅ Automatically applicable for all eligible employees
This benefit is completely complimentary and aims to support Railway families during difficult times.
🧾 Full List of Insurance Benefits Under the MoU
| Type of Cover | Insurance Amount (₹) | Details |
|---|---|---|
| Accidental Death | 1 crore | For all Railway employees with SBI salary accounts |
| Air Accident (Death) Cover | 1.6 crore + up to 1 crore (RuPay) | Highest coverage among PSUs |
| Permanent Total Disablement | 1 crore | 100% payout on total disability |
| Permanent Partial Disability | Up to 80 lakh | As per level of disability |
| Natural Death Cover | 10 lakh | No premium, no medical required |
👨✈️ MoU Benefits for Railway Employees
With nearly 7 lakh Railway employees maintaining salary accounts with SBI, this MoU is a game-changer in public sector employee welfare.
Key Highlights:
- ✅ ₹1 crore accidental death insurance cover
- ✅ ₹1.6 crore air accident cover + RuPay benefits
- ✅ ₹10 lakh natural death coverage
- ✅ ₹1 crore permanent disability cover
- ✅ No premium or paperwork required
💬 Official Statement
“This MoU is a testament to the compassionate vision of the Government of India to ensure the financial well-being of our dedicated Railway employees,”
— Shri Ashwini Vaishnaw, Minister for Railways.
🚆 Why This MoU Matters
- Strengthens employee welfare and financial security
- Offers zero-cost insurance for lakhs of employees
- Promotes collaboration between Indian Railways and SBI
- Extends exclusive benefits to Group C and frontline workers
- Reinforces the government’s people-first approach
📅 When Will the MoU Take Effect?
The MoU was officially signed on 01 September 2025 in Delhi.
The benefits will roll out shortly to all eligible Railway employees who hold salary accounts with SBI.
❓ FAQs – Indian Railways & SBI MoU 2025
Q1. Who is eligible for the ₹1 crore insurance?
All Indian Railway employees having their salary accounts with SBI.
Q2. Is there any cost involved for employees?
No. The benefits are completely free — no premium required.
Q3. Does it cover natural death?
Yes, ₹10 lakh cover is provided for natural death without medical tests.
Q4. Are RuPay Debit Card holders eligible for additional coverage?
Yes, they can get up to ₹1 crore extra under RuPay-linked insurance benefits.
Q5. How many employees will benefit?
Nearly 7 lakh Railway employees are expected to benefit from this MoU.
🏁 Conclusion
The Indian Railways–SBI MoU 2025 marks a historic step in employee welfare, offering comprehensive insurance coverage for Railway staff and their families.
With ₹1 crore accidental death cover, ₹10 lakh natural death benefit, and ₹1.6 crore air accident cover, this initiative reflects the Government’s commitment to the well-being of Railway employees who keep India’s lifeline running.
A compassionate, inclusive, and employee-centric initiative — setting new benchmarks in public sector welfare.