Vinod Bhat
New Delhi, Sep 01: Indian Railways (IR), one of the largest rail networks in the world, and the State Bank of India (SBI), the country’s largest public sector bank, signed a Memorandum of Understanding (MoU) on Monday to provide enhanced insurance benefits to railway employees.
A senior railway official, speaking to Kashmir Despatch special correspondent Vinod Bhat, said the ceremony was graced by the august presence of the Hon’ble Minister for Railways, Information & Broadcasting, and Electronics & Information Technology, Shri Ashwini Vaishnaw; the Chairman of the Railway Board, Shri Satish Kumar; and the Chairman of SBI, Shri C.S. Setty.
Sharing further details, the official stated that under the MoU, insurance coverage for railway employees who maintain salary accounts with SBI has been significantly enhanced. In the event of accidental death, the insurance benefit has been increased to ₹1 crore. This is a substantial rise from the current coverage of ₹1.20 lakh, ₹60,000, and ₹30,000 for Group A, B, and C employees, respectively, under the Central Government Employees Group Insurance Scheme (CGEGIS).
The official added that all railway employees holding a salary account exclusively with SBI will now be eligible for a natural death insurance coverage of ₹10 lakh, without the need to pay any premium or undergo a medical examination.
He added that with nearly 7 lakh railway employees maintaining salary accounts with SBI, this agreement marks a major step towards employee welfare, reflecting a caring and constructive partnership between Indian Railways and SBI.
