Tamil Nadu Government Signs MoUs with 7 Banks to Offer Free Insurance and Loan Benefits to Government Employees
| ➡️ Get instant news updates on Whatsapp. Click here to join our Whatsapp Group. |
In a major step towards the welfare of government employees, the Tamil Nadu government has signed Memoranda of Understanding (MoUs) with seven leading banks to provide free insurance coverage and loan concessions. These benefits will be available to employees who have their salary accounts with these banks.
Which Banks Are Involved?
The banks that signed the MoUs include:
- State Bank of India (SBI)
- Indian Overseas Bank (IOB)
- Indian Bank
- Canara Bank
- Axis Bank
- Bank of Baroda
- Union Bank of India
The MoUs were signed in the presence of Chief Minister M.K. Stalin at the Secretariat in Chennai.
Why This Initiative?
This new initiative follows the announcement made by the Finance Minister during the Tamil Nadu Budget 2025. The government had proposed that banks maintaining salary accounts of state employees would offer special benefits at no additional cost.
What Benefits Will Government Employees Get?
Employees who have their salary accounts with these banks will be eligible for a range of free insurance covers and financial support, including:
- 1. ₹1 Crore Personal Accident Insurance: If a government employee dies or suffers permanent disability due to an accident, their family will receive a personal accident insurance cover of ₹1 crore.
- 2. ₹5 Lakh Marriage Assistance: In case a government employee dies in an accident, the family will get ₹5 lakh towards the marriage expenses of the employee’s daughter.
- 3. ₹10 Lakh for Higher Education of Daughters: The banks will also provide up to ₹10 lakh for higher education for two daughters of a government employee who dies in an accident.
- 4. ₹10 Lakh Term Life Insurance: In case of natural death of an employee during service, a term life insurance cover of ₹10 lakh will be provided.
Special Loan Concessions
In addition to insurance, the MoUs include interest rate concessions on:
- Personal loans
- Housing loans
- Education loans
These benefits are meant to reduce the financial burden on employees and make loans more affordable.
Conclusion
This is a significant move by the Tamil Nadu government to support the financial well-being of its employees and their families. By tying up with major public and private sector banks, the state ensures that employees not only receive their salaries but also enjoy valuable financial protection and support without paying extra.
