CALCULATE YOUR SIP RETURNS

Indian Railways and SBI Signed MoU to Enhance Employee Insurance Benefits

Written by: Sachin GuptaUpdated on: 2 Sept 2025, 3:18 pm IST
Indian Railways and SBI have signed a MoU to upgrade insurance benefits for Railway employees.
Indian Railways and SBI Signed MoU to Enhance Employee Insurance Benefits
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

In a significant development toward employee welfare, Indian Railways and the State Bank of India (SBI), the nation’s largest public sector bank, have signed a transformative Memorandum of Understanding (MoU) with an objective to substantially upgrade insurance benefits for Railway employees.

Enhanced Insurance Coverage for Railway Employees

This partnership introduces a sweeping enhancement in insurance coverage for Railway employees holding salary accounts with SBI:

  • Accidental Death Insurance has been significantly raised to ₹1 crore, compared to the current coverage under the Central Government Employees Group Insurance Scheme (CGEGIS), which offers:
  1. ₹1.20 lakh for Group A
  2. ₹60,000 for Group B
  3. ₹30,000 for Group C employees
  • Natural Death Coverage of ₹10 lakh will now be extended at no cost, requiring no premium payments or medical examinations, an unprecedented benefit exclusively for Railway staff with SBI salary accounts.

With approximately 7 lakh Railway employees banking with SBI, this agreement marks a milestone in public sector collaboration focused on workforce welfare.

Complimentary Insurance Benefits

In addition to the core coverage, the MoU also includes several complementary insurance provisions:

  • Air Accident Insurance (Death): ₹1.60 crore
  • Additional RuPay Debit Card Benefit: Up to ₹1 crore
  • Personal Accident (Permanent Total Disablement): ₹1.00 crore
  • Personal Accident (Permanent Partial Disability): Up to ₹80 lakh

Also Read: Best Railway Stocks for September 2025: Jupiter Wagons, Titagarh Rail, BEML and More - Based on 5-Yr CAGR 

Conclusion

The partnership stands as a testament to the shared commitment of Indian Railways and SBI to prioritise the safety, security, and dignity of their employees. Special emphasis has been placed on ensuring frontline workers, particularly those in Group C and equivalent categories.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Sep 2, 2025, 9:43 AM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3 Cr+ happy customers