An important Memorandum of Understanding (MoU) has been signed by Indian Railways and the State Bank of India to significantly increase the insurance coverage for railroad workers and their families.
This agreement is a significant step toward employee welfare and was signed in front of Railway Minister Ashwini Vaishnaw. Under this new partnership, employees who have their salary accounts with SBI will now receive an accidental death insurance cover of Rs 1 crore.
This is a dramatic increase from the previous coverage amounts under the Central Government Employees Group Insurance Scheme (CGEGIS), which offered Group A employees Rs 1.20 lakh, Group B employees Rs 60,000, and Group C employees Rs 30,000.
Furthermore, all railway employees who hold a salary account with SBI will now be eligible for a Rs 10 lakh natural death insurance coverage. This benefit comes with no premium costs and does not require a medical examination.
The MoU also includes other key complementary covers, such as air accident insurance (death) of Rs 1.60 crore plus an additional Rs 1 crore on the RuPay debit card, a personal accident (permanent total disablement) cover of Rs 1 crore, and a personal accident (permanent partial disability) cover of up to Rs 80 lakh.
With nearly 7 lakh railway employees maintaining salary accounts with SBI, this agreement is designed to be employee-centric and compassionate, providing exclusive benefits, especially for frontline personnel in Group C and other groups.
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