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The State Bank of India (SBI) and Indian Railways have signed a Memorandum of Understanding (MoU) that brings a major boost to the insurance benefits available for railway employees who hold their salary accounts with SBI.
Big Increase in Insurance Coverage
Under this new agreement, SBI will now provide:
- ₹1 crore personal accident insurance cover (for accidental death and permanent total disability).
- Up to ₹80 lakh cover for permanent partial disability.
This is a huge increase compared to the earlier insurance limits, which were only ₹1.2 lakh for Group A, ₹60,000 for Group B, and ₹30,000 for Group C employees under the Central Government Employees Group Insurance Scheme (CGEGIS).
According to the Ministry of Railways, the new MoU ensures that in case of accidental death, the coverage has now been raised to ₹1 crore, making it a significant financial safety net for employees and their families.
Apart from the main insurance cover, SBI is offering several additional protections to railway employees with salary accounts in the bank:
- Air accident cover of ₹1.6 crore.
- RuPay Debit Card accident cover of up to ₹1 crore.
- Natural death cover of ₹10 lakh, which is provided free of cost—no premium or medical check-up required.
Nearly 7 lakh railway employees currently have salary accounts with SBI, meaning a large workforce will benefit from these enhanced covers.
Insurance Coverage for Railway Employees with SBI Salary Accounts
| Coverage Type | New Coverage |
|---|---|
| Accidental Death | ₹1 crore |
| Permanent Total Disablement | ₹1 crore |
| Permanent Partial Disability | Up to ₹80 lakh |
| Air Accident Death Cover | ₹1.6 crore |
| Additional RuPay Debit Card Cover | Up to ₹1 crore |
| Natural Death Cover | ₹10 lakh (no premium / no medical check) |
SBI Insurance Cover on Debit Cards
In addition to the MoU benefits for railway employees, SBI also provides personal accident insurance on its eligible debit cards. To claim this cover, the debit card must be used for at least one financial transaction (ATM, PoS, or e-commerce) within the last 90 days before the accident.
Here are the details of the coverage based on debit card type:
| Debit Card Variant | Accident Insurance (Non-Air, Death Only) | Air Accident Insurance (Death Only) |
|---|---|---|
| SBI Gold (MasterCard / VISA) | ₹2,00,000 | ₹4,00,000 |
| SBI Platinum (MasterCard / VISA) | ₹5,00,000 | ₹10,00,000 |
| SBI Pride (Business Debit) | ₹2,00,000 | ₹4,00,000 |
| SBI Premium (Business Debit) | ₹5,00,000 | ₹10,00,000 |
| SBI VISA Signature / MasterCard World Debit Card | ₹10,00,000 | ₹20,00,000 |
This scheme ensures wider financial protection not only for railway staff with SBI salary accounts but also for all SBI customers holding eligible debit cards.
Benefits under SBI Railway Salary Package
- Zero balance account and unlimited number of free transactions at any bank ATM in India.
- Complimentary Personal Accident Insurance (Death) cover of ₹ 1 Crore (effective from 04.09.2024)
- Complimentary Air Accident Insurance (Death) cover of ₹ 1.6 Crore (effective from 04.09.2024)
- Complimentary Personal Accident Insurance (Permanent Total Disability) cover up to ₹ 1 Crore (effective from 04.09.2024)
- Complimentary Personal Accident (Permanent Partial Disability) cover up to Rs.80 Lakh (effective from 04.09.2024)
- Express Credit, Home Loan, Car Loan and Education Loan available at competitive rates.
- Up to 50% waiver on SBI Personal Loan, up to 50% on Car Loan and up to 100% on Home Loan processing fee (Actual TIR and valuation charges, etc., will be recovered where applicable)
- Up to 50% discount on annual locker rent.
- Auto-sweep facility (optional) to create e-MOD (Multi Option Deposit) and earn higher interest.
- Demat and online trading account facilities are available.
- Issuance of drafts, multi city cheques, SMS alerts, NEFT/RTGS free of cost.
- Overdraft facility up to 2 months net salary (subject to maximum limit depending on account type)
- SBI Rishtey (Family Savings Account): Special benefits are available for family members of the salary package customer.
- Under “SBI Rishtey” for RSP account holders, many facilities are available including zero balance accounts for maximum four family members, free debit card, and personal accident insurance of Rs. 5 lakhs per member.
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