Indian Railways & SBI Sign MoU for Insurance Benefits to Railway Employees

• 02 Sep 2025
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On 1 September 2025, two of India’s leading institutions, Indian Railways and State Bank of India, signed a landmark Memorandum of Understanding (MoU). Hon’ble Minister for Railways, Information & Broadcasting, Electronics & Information Technology, Shri Ashwini Vaishnaw;  the Chairman, Railway Board, Shri Satish Kumar; and the Chairman, SBI, Shri C.S. Setty, graced the occasion.

Insurance Coverage for Accidental Death

The insurance benefit for accidental death is as follows:

Under the MoU, insurance coverage for railway employees who have SBI salary accounts has been increased to a great extent. Earlier, employees were covered under the Central Government Employees Group Insurance Scheme (CGEGIS). The insurance benefit for them depended on their group category.

For Group A, B and C employees, the coverage was Rs. 1.20 lakh, Rs. 60,000 and Rs. 30,000, respectively. Now, their insurance coverage has been increased to Rs. 1 crore.

Insurance Coverage for Natural Death

All railway employees who hold only a salary account with SBI will now be eligible for natural death insurance coverage amounting to Rs. 10 lakh. For this coverage, they will not need to go through any medical examination or pay any premium.

With nearly 700,000 railway employees maintaining salary accounts with SBI, this agreement represents a significant step towards employee welfare. It showcases a supportive and constructive partnership between Indian Railways and SBI. 

Complimentary Insurance Covers in MoU

Some key complimentary insurance covers included in this MoU are: 

The MoU between Indian Railways and SBI is employee-centric and compassionate. It aims to provide exclusive benefits to the workforce.

Source: Press Information Bureau