September 2, 2025: Indian Railways has entered into a Memorandum of Understanding (MoU) with the State Bank of India (SBI) to offer improved insurance protection for railway employees who maintain their salary accounts with the bank. The initiative is expected to benefit around seven lakh staff members nationwide.
Under the agreement, employees will receive accidental death coverage of up to ₹1 crore, a significant increase from previous limits under the Central Government Employees Group Insurance Scheme (CGEGIS), which ranged from ₹30,000 to ₹1.20 lakh depending on the employee category. The MoU also introduces a natural death insurance benefit of ₹10 lakh, available without any extra premium or medical examinations.
The new arrangement will also cover retired railway personnel who hold salary accounts with SBI, ensuring that pensioners enjoy similar financial protection.
Besides life insurance benefits, railway employees will gain access to additional SBI services, including certain exclusive banking facilities. The enhanced insurance scheme will take effect from the 22nd of the month following the completion of required formalities and submission of employee data to the insurance provider.
Railway officials emphasized that the partnership demonstrates the organization’s commitment to the welfare and financial security of its workforce. By increasing coverage limits and providing broader benefits, the initiative aims to ensure peace of mind for both active employees and retirees.
With nearly seven lakh employees set to benefit, this collaboration between Indian Railways and SBI is a landmark step in strengthening employee welfare and social security in the public sector.
