Indian Railway: Good news for railway employees! If you have a bank account in SBI, you will get an insurance cover of Rs 1 crore

Indian Railways Employees Get ₹1 Crore Insurance Cover with SBI Salary Accounts

In a major announcement for railway employees, the Indian Railways has partnered with the State Bank of India (SBI) to provide a significant insurance benefit. Employees whose salary accounts are maintained with SBI will now receive an accidental death insurance cover of up to ₹1 crore.

The agreement was formalized in the presence of Railway Minister Ashwini Vaishnaw, marking a step toward providing enhanced financial security for railway staff without imposing any additional financial burden on them.

No Extra Premium or Medical Tests Required

One of the biggest advantages of this scheme is that employees do not need to pay any extra premium or undergo medical tests to access the coverage. This makes the benefit seamless and automatically available to all eligible railway staff.

Earlier Insurance Coverage Was Very Low

Previously, employees were covered under the Central Government Employees Group Insurance Scheme (CGEGIS). However, the coverage was minimal compared to current standards:

• Group A employees received just ₹1.20 lakh

• Group B employees received ₹60,000

• Group C employees received only ₹30,000

The new scheme represents a massive jump in insurance protection, especially for Group C employees, who form a large part of the workforce.

What the New SBI-Railway Insurance Scheme Covers

Under the new arrangement, employees with SBI salary accounts will benefit from multiple layers of coverage:

• Accidental Death Insurance: Up to ₹1 crore

• Natural Death Insurance: ₹10 lakh

• Air Accident Insurance: Up to ₹1.60 crore

• Additional RuPay Debit Card Insurance: Up to ₹1 crore

• Permanent Total Disability: Up to ₹1 crore

• Permanent Partial Disability: Up to ₹80 lakh

This comprehensive coverage ensures that employees and their families are financially protected in case of unforeseen tragedies.

Who Benefits?

The Indian Railways has clarified that around 7 lakh employees with SBI salary accounts will benefit from this insurance scheme. The initiative is particularly significant for Group C employees, who often work in frontline positions with higher exposure to risk. For them, this expanded coverage provides much-needed financial reassurance.

Why This Move Matters

Indian Railways is one of the country’s largest employers, and ensuring the safety and welfare of its workforce has always been a priority. By tying up with SBI, the Railways has not only upgraded insurance coverage but has also taken a meaningful step toward boosting employee morale and loyalty.

This move eliminates the limitations of the older CGEGIS plan and replaces it with an extensive package that addresses both accidental and natural causes of risk. In addition, the high-value air accident insurance cover is especially relevant given the travel-related responsibilities of many employees.

Final Thoughts

The new insurance initiative by Indian Railways and SBI is a game-changer for nearly 7 lakh railway employees. Without any additional cost or paperwork, staff now enjoy substantial financial protection, ensuring peace of mind for them and their families.

For decades, government employees, particularly in Group C, had to make do with meager insurance benefits. Now, with this ₹1 crore cover, the Railways has set a new benchmark in employee welfare.

This partnership not only strengthens the social security net for railway employees but also highlights the government’s commitment to improving the financial well-being of its workforce.