State Bank of India (SBI), India’s largest public sector bank, offers an amazing benefit for salaried individuals – a free accident insurance cover up to ₹1 crore. This facility is available for specific SBI salary account holders and can be a great support in case of unfortunate accidents. However, many account holders are not aware of this benefit and often miss out on it. Here’s a complete guide to help you understand what this insurance is, who is eligible, what it covers, and how to claim it.
What Is SBI Salary Account Insurance?
SBI provides Personal Accident Insurance (PAI) to customers who hold a salary account under specific packages. This insurance provides financial protection to the nominee in case the account holder dies due to an accident. The coverage varies depending on the type of salary package and monthly salary credit.
Key Features of SBI Salary Account Insurance
Insurance cover up to ₹1 crore
Completely free – no premium or extra charges
Available for select salary account holders only
Nominee receives the amount in case of accidental death
Requires active salary credit in the previous month
Who Is Eligible for This Insurance?
To be eligible for this insurance, your account must be part of a valid SBI salary account package. It is not available for regular savings accounts.
Basic Eligibility Conditions:
The account should be under Corporate Salary Package (CSP) or other eligible salary packages like Defence, Police, or PSU salary accounts.
Monthly salary credit must be received in the previous calendar month.
The account holder should be within the age limits defined by SBI’s policy.
The accident must be reported on time, and all claim conditions should be met.
Salary Account Types and Insurance Coverage
| SBI Salary Account Type | Insurance Cover | Minimum Salary Credit | Notes |
|---|---|---|---|
| Platinum Tier CSP | ₹1 crore | ₹1 lakh or more | Active salary credit needed |
| Gold Tier CSP | ₹50 lakh | ₹50,000 – ₹99,999 | |
| Silver Tier CSP | ₹30 lakh | ₹20,000 – ₹49,999 | |
| Basic CSP | ₹20 lakh | ₹10,000 – ₹19,999 | |
| Defence/Paramilitary Package | ₹30 lakh – ₹1 cr | No minimum salary | Based on rank and package |
| Police Salary Package | ₹30 lakh – ₹50 lakh | No minimum limit | |
| Central Govt/PSU Salary A/c | ₹30 lakh – ₹50 lakh | Based on designation |
How to Activate the Insurance Benefit?
You don’t need to apply separately. This insurance benefit is automatically active if your salary account meets the eligibility requirements.
Steps to Stay Covered:
Make sure your salary is credited regularly
Ensure your KYC is updated
Keep your nominee details updated in the account
Confirm with your SBI branch about your salary package tier
What Does the Insurance Cover?
The insurance is only applicable for accidental death. It provides full claim settlement to the nominee if the account holder dies in an accident.
Covered:
Road accidents
Falls
Other sudden and accidental deaths
Coverage is 24×7 worldwide
Not Covered:
Natural death (e.g., heart attack, illness)
Suicide or self-harm
Death during criminal or illegal activity
How to File a Claim?
If the unfortunate event of an accident occurs, the nominee must file a claim with SBI and the insurance company. The process must be completed within the defined timeline.
Documents Required:
Death certificate of the account holder
FIR and post-mortem report (if required)
Last salary credit proof (bank statement)
Insurance claim form (provided by SBI)
Nominee’s ID and relationship proof
Claim Process:
| Step | Action | Time Frame |
|---|---|---|
| 1 | Inform SBI and insurer | Within 30 days |
| 2 | Submit all required documents | As soon as possible |
| 3 | Insurance company processes the claim | 30 to 60 working days |
| 4 | Claim amount is credited to nominee’s account | After approval |
Things to Keep in Mind
No salary credit in the last month = No insurance benefit
The account must be an active salary account, not a savings account
If you change your job and salary stops, insurance will be inactive
Always verify your salary package type with your SBI branch
Frequently Asked Questions (FAQs)
Q: Is this insurance for private employees too?
A: Yes, if your company has an agreement with SBI for the CSP package.
Q: Do I need to pay for this insurance?
A: No, it is completely free for eligible accounts.
Q: What if my salary is not credited this month?
A: You will not be eligible for the insurance benefit that month.
Q: Will I get the benefit if I switch jobs?
A: No, once the salary stops and the account becomes a savings account, the benefit ends.
Final Thoughts
SBI’s free ₹1 crore accident insurance for salary account holders is a valuable financial safety net. It requires no extra effort or payment—just make sure your account remains active with monthly salary credit. If you or your loved ones hold an SBI salary account, check your package and nominee details today. This benefit could prove to be a crucial support for your family in difficult times.