Indian Railways employees with SBI salary accounts to get up to ₹1.6 crore insurance cover

The State Bank of India and Indian Railways have signed a Memorandum of Understanding (MoU), wherein the bank has agreed to provide a personal accident cover (permanent total disablement) of ₹1 crore to railway employees who maintain their salary accounts with SBI.

The bank will also provide a personal accident cover (permanent partial disability) of up to ₹80 lakh to railway employees with a salary account in SBI.

This is a significant jump from the previous insurance limits of ₹1.2 lakh, ₹60,000 and ₹30,000 available to Group A, B, and C employees, respectively. Group A employees are from the top management/officer cadre, while Group B and C are middle management/supervisory roles and clerical staff, respectively.

“Under this MoU, insurance coverage for Railway employees maintaining salary accounts with SBI has been significantly enhanced. In case of accidental death, the insurance benefit has been increased to ₹1 crore, compared to the current coverage of ₹1.20 lakh, ₹60,000 and ₹30,000 for Group A, B, and C employees respectively, covered under CGEGIS,” the Ministry of Railways said in a statement.

SBI will also provide a cover of ₹1.6 crore on death from an air accident to railway employees, plus an additional cover up to ₹1 crore on RuPay Debit Card.

Moreover, employees with only a salary account with SBI will get a natural death cover of ₹10 lakh without the need to pay any premium or undergo medical checks.

As per the statement, nearly 7 lakh railway employees maintain their salary accounts with SBI.

Here is what SBI is offering to railway employees:

SBI insurance cover on debit cards

SBI offers Personal Accidental Insurance (death) on eligible SBI debit cards. The insurance becomes operational when the SBI debit card is used at least once for a financial transaction on any channel during the last 90 days from the date of the accident. This cover is available to everyone who has the relevant SBI debit card, as mentioned below.

This insurance cover is “available to Debit Cards used at least once for a financial transaction on any channel, viz ATM/PoS/eCom during the last 90 days from the date of accident,” as per the SBI website.