Railway Workers Score Massive Rs 1 Crore Insurance Boost

Indian Railways signed a transformative Memorandum of Understanding (MoU) with the State Bank of India (SBI) on Monday, offering unprecedented insurance coverage for its workforce. The agreement, formalized in the presence of Railway Minister Ashwini Vaishnaw, introduces a suite of insurance benefits that significantly elevate financial security for railway employees and their families.

Under the new MoU, railway employees with SBI salary accounts will receive an accidental death insurance cover of Rs 1 crore, a dramatic increase from the existing Central Government Employees Group Insurance Scheme (CGEGIS), which provides Rs 1.20 lakh, Rs 60,000, and Rs 30,000 for Group A, B, and C employees, respectively. Additionally, all employees holding SBI salary accounts are now eligible for a Rs 10 lakh natural death insurance cover, offered without any premium or medical examination requirements, ensuring hassle-free access to this benefit.

The agreement benefits approximately 7 lakh railway employees who maintain salary accounts with SBI, marking a significant step toward improving the financial well-being of the workforce. The MoU also includes a range of complementary insurance covers, including Rs 1.60 crore for air accident deaths (plus an additional Rs 1 crore on RuPay debit card), Rs 1 crore for permanent total disablement due to personal accidents, and up to Rs 80 lakh for permanent partial disability.

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“This partnership reflects Indian Railways’ commitment to its employees, particularly frontline workers in Group C, by providing compassionate, employee-centric benefits,” the Railways Ministry stated. The enhanced insurance coverage is designed to offer peace of mind and financial security, ensuring that railway workers and their families are well-protected against unforeseen circumstances. This initiative underscores the strong collaboration between Indian Railways and SBI, setting a new benchmark for employee welfare in the public sector.

By prioritizing the needs of its workforce, Indian Railways is not only recognizing the critical role its employees play but also reinforcing its reputation as a caring employer. This MoU is poised to make a lasting impact, offering railway workers unmatched financial protection and paving the way for similar initiatives across other sectors.

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