Summary of this article
SBI to extend enhanced insurance to railway employees
Accidental death cover now at Rs 1 crore for employees
Natural death insurance coverage of Rs 10 lakh without premium
Indian Railways has partnered with the State Bank of India (SBI) to offer insurance benefits to employees who maintain their salary accounts with SBI. They signed the Memorandum of Understanding (MoU) on September 1, 2025. According to the SBI’s post on X (Formerly twitter), “As part of the Railway Salary Package, employees will be covered under Personal Accidental Insurance and Air Accidental Insurance, ensuring enhanced financial security for them and their families. This will be in addition to the host of other features, including lifestyle privileges for them and their families.”
At the event, the bank also issued a cheque of Rs 11.40 crore towards the accidental insurance claims for the families of the deceased railway employees.
Under the MoU, SBI will be handling the salaries of 12.6 lakh railway employees. It will cover them for accidental death insurance of Rs 1 crore. Earlier, the coverage was different depending on whether employees belonged to the Railways’ Group A, B, or C. And, accordingly, their coverage was Rs 1.20 lakh, Rs 60,000, and 30,000 under the Central Government Employees Group Insurance Scheme (CGEGIS). Now, this enhanced cover will significantly improve financial security for Railway employees and their families.
However, other benefits related to their salary account, such as lifestyle privilege, will continue in addition to the enhanced accidental insurance coverage.
According to the Ministry of Railways statement, “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 to pay any premium or undergo any medical examination.”
The key points covered under the MoU:
• Accidental death cover of Rs 1 crore
• Air accident insurance (Death) cover of Rs 1.60 crore
• The account will issue the RuPay card to Railway salary account holders and offer an additional accidental insurance of Rs 1.00 crore
• Personal accident (Permanent Total Disablement) cover of Rs 1.00 crore
• Personal accident (Permanent Partial Disability) cover of up to Rs 80 lakh
• Natural death insurance coverage of Rs 10 lakh on the salary accounts of Railway employees without medical tests and without any premium
This would be a “Curated Package” for railway employees to cover them against accidental risks, as the SBI’s post on X reads, “Through this collaboration, SBI will extend a curated salary package to 12.6 lakh Railway employees, acknowledging their invaluable contribution as the backbone of India’s lifeline.”
