Indian Railways, SBI Sign Landmark MoU to Boost Insurance for Employees

In a significant move aimed at strengthening the social security net for railway employees, Indian Railways (IR) and the State Bank of India (SBI) signed a landmark Memorandum of Understanding (MoU) in New Delhi. The agreement, witnessed by Union Minister for Railways, Information & Broadcasting, and Electronics & Information Technology, Shri Ashwini Vaishnaw, heralds a new era of employee-centric welfare measures within one of the world’s largest rail networks.

Also present at the ceremony were Shri Satish Kumar, Chairman of the Railway Board, and Shri C.S. Setty, Chairman of SBI, who lauded the initiative as an exemplary collaboration between two of India’s largest institutions.

Enhanced Insurance Coverage

Under the MoU, insurance coverage for Railway employees holding salary accounts with SBI has been significantly enhanced, marking a dramatic increase from the existing Central Government Employees Group Insurance Scheme (CGEGIS) provisions.

• Accidental Death Cover: Increased to ₹1 crore for all employees compared to the earlier graded coverage of ₹1.20 lakh (Group A), ₹60,000 (Group B), and ₹30,000 (Group C).

• Natural Death Insurance Cover: All railway employees with salary accounts in SBI will now be covered for ₹10 lakh, without paying any premium or undergoing medical examination.

With nearly 7 lakh Railway employees maintaining salary accounts in SBI, this MoU represents one of the largest workforce insurance arrangements in the country.

Complimentary Insurance Benefits

The MoU also introduces a suite of comprehensive complimentary insurance covers:

• Air Accident Insurance (Death) Cover: ₹1.60 crore, with an additional up to ₹1 crore available on RuPay Debit Card.

• Personal Accident (Permanent Total Disablement): Coverage of up to ₹1 crore.

• Personal Accident (Permanent Partial Disability): Coverage of up to ₹80 lakh.

These expanded benefits particularly support frontline railway personnel in Group C and other categories, who are most exposed to occupational risks in day-to-day operations.

A Step Towards Inclusive Employee Welfare

Speaking at the event, Minister Ashwini Vaishnaw praised the initiative as a compassionate and forward-looking step to support the backbone of Indian Railways—the employees. He emphasized that the welfare of workers has always been a priority for the government, and this collaboration between IR and SBI demonstrates a modern, employee-first approach to institutional partnerships.

Shri C.S. Setty, Chairman of SBI, highlighted the bank’s commitment to serving the nation’s workforce:

“SBI has always strived to extend financial security to its customers. This MoU ensures that Railway employees receive exclusive, enhanced benefits, reflecting our long-standing relationship with Indian Railways and our shared goal of employee welfare.”

Shri Satish Kumar, Chairman, Railway Board, added that the MoU sets a benchmark for employee welfare collaborations, creating a model that can inspire similar partnerships across other sectors.

Impact and Broader Significance

The MoU reflects a transformative approach to employee welfare:

• It shifts from modest, graded coverage under older schemes to universal, high-value insurance coverage.

• It ensures that all employees—irrespective of rank—receive equitable protection.

• It strengthens the bond between Indian Railways and SBI, two institutions with vast reach and a shared mandate of public service.

For Railway employees, especially those on the frontlines of operations, maintenance, and safety, the enhanced insurance cover provides a sense of security and dignity, ensuring that their families are better protected against unforeseen tragedies.

The MoU between Indian Railways and SBI is more than just an agreement—it is a symbol of care, inclusivity, and recognition for millions of workers who keep the country’s transport backbone running. By significantly enhancing insurance benefits, the initiative ensures that employees, regardless of category, have access to comprehensive financial protection.

This step not only reinforces the Railways’ role as a people-first employer but also strengthens SBI’s commitment as a partner in national progress. Together, they have set a new standard for employee welfare in India’s public sector.