Accidental Death Insurance for Central Government Employees Hiked to Rs 1 Crore
The insurance benefit in case of accidental death has been increased to Rs 1 crore, compared to the current coverage of Rs 1.20 lakh, Rs 60,000, and Rs 30,000 for Group A, B, and C employees, respectively, covered under CGEGIS.
New Delhi, 2 September 2025: In order to boost the insurance benefits, the largest public sector bank of the country, State Bank of India (SBI), has signed a Memorandum of Understanding (MoU) with Indian Railways to provide enhanced insurance coverage for railway employees who maintain salary accounts with the bank.
The insurance benefit in case of accidental death has been increased to Rs 1 crore, compared to the current coverage of Rs 1.20 lakh, Rs 60,000, and Rs 30,000 for Group A, B, and C employees, respectively, covered under CGEGIS.
Additionally, all Railway employees holding only a salary account with SBI will now be eligible for natural death insurance coverage of Rs 10 lakh, without the need for paying any premium or undergoing any medical examination.
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The agreement is a major achievement towards employee welfare, with almost 7 lakh railway employees maintaining salary accounts with SBI.
Under this MoU, some of the key complimentary insurance covers include Air Accident Insurance (Death) Cover of Rs 1.60 crore plus an additional up to Rs 1.00 crore on the RuPay Debit Card; Personal Accident (Permanent Total Disablement) Cover of Rs 1.00 crore; and Personal Accident (Permanent Partial Disability) Cover of up to Rs 80 lakh.
This MoU between two leading entities is employee-centric, compassionate, and designed to bring exclusive benefits to the workforce, especially frontline railway personnel in Group C and others.
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