₹1 Crore Accident Insurance for ST Employees: MoU Signed with State Bank

In a significant relief measure, around 92,000 officers and employees of the Maharashtra State Road Transport Corporation (MSRTC or ST) will now receive accident insurance coverage of up to ₹1 crore. This development follows the signing of a Memorandum of Understanding (MoU) between MSRTC and the State Bank of India (SBI).

The new insurance benefit will be available to employees who have accounts under SBI’s Corporate Salary Package (CSP) scheme. Under this agreement, in the event of accidental death or permanent disability, a compensation of ₹1 crore will be provided to the employee's family. Importantly, the benefit applies regardless of whether the employee is on duty or not at the time of the accident.

Employee organizations had been demanding such a scheme for a long time. Following a positive response from the State Bank, the MSRTC finalized the agreement. This move replaces the earlier provision where accident-affected employees or their families received only ₹1 lakh as assistance.

In addition to the ₹1 crore cover for accidents, the scheme also includes group term insurance of up to ₹6 lakh in the case of natural death. Further, in the event of accidental death during air travel, the scheme offers air travel insurance benefits as well. All relevant documentation and terms and conditions have been circulated to the concerned departments.

At present, only employees holding salary accounts with SBI are eligible for this benefit. As a result, many employees with accounts in other banks are reportedly considering switching to SBI. This shift could impact the ST Corporation's own cooperative bank, prompting the ST organization to urge the state government to extend financial assistance to support the bank. This insurance scheme is seen as a major step forward in ensuring financial security for MSRTC employees and their families.