For Armed Forces Serving and Pensioners : Latest Order on Rs 50 Lakh Free Insurance Cover

Addl Dte Gen Pers Services
Adjutant General’s Branch/PS-3(P)
IHQ of MoD (Army) Defence
Office Complex, 5th Floor,
A- Block, KG Marg New Delhi-110001

B/27087/SBI/AG/PS-3(P)                                                   21 Dec 2021

Northern Command (A)
Eastern Command (A)
Western Command (A)
Southern Command (A)
Central Command (A)
South Western Comd (A)
A&N Command


  1. The MoU between Indian Army & SBI Bank which had expired on 11 Jul 2021 has been renewed wef 14 Dec 2021 for a further pd of three yrs.
  2. Many features have been enhanced and benefits are now being extended to pensioners too, which was not existing prior to this MoU. The detailed features of Defence Salary Package (DSP) acct for Serving Pers are att at Appx ‘A’, which are applicable wef 04 Jan 2022 (beginning of Insurance Year). Existing rates & features are applicable till 03 Jan 2022. The features of extended benefits to the pensioners are att as Appx ‘B’.
  3. Spouse, children, parents and siblings are eligible to a open open four “SBI Rishtey”, family SB acct with no min bal. Moreover, benefits to family pensioners are att as Appx ‘C’.
  4. The benefits of DSP accts are available only to DSP Cat acct. Apropos, it is imp for all pers to verify / ensure from passbook / internet banking that their accts are categorized under DSP (Gold / Diamond / Platinum). Similarly, benefits of Army Pensioners will be avbl only to the pension accts which are categorized as DSP Pension (Gold / Diamond / Platinum) as per their rks at the time of retirement; same need to be verified by the pensioners through passbook / internet banking. Correspondingly, family pensioners should also verify that their acct are Cat under “Shaurya Family Pensioners” acct. If acct is not categorized as DSP / DSP Pension / Shaurya Family Pensioners acct, then an appl with reqd docu to be submitted at the respective branch for proper cat of the acct. Format of appl is att as Appx ‘D’.

  5.     Accident Insurance.   Personal Accident Insurance (Death / Disability) is admissible only in case of death / disablement resulting solely & directly from accident caused by external violent & visible means and as defined in IRDA norms / guidelines. The benefits of Accident Insurance is avbl only if the acct is cat under Salary Package with appropriate DSP product code. Death due to aircraft accident other than declared war will also be covered under PAI cover. Death occurred due to snake bite & in HAA due to HAPO / HACO are also eligible for PAI claim.

6.    Unit / fmn / claimants have to send intimation of death / accident for insurance claim to the Insurance Company via email / phone / letter within 90 days of death / accident (in case of disability). However for settlement of claim, relevant sp docu have to be submitted within 180 days. The list of docus reqd to be submitted are as follows:-

  • Annexure — 4,5,6,7 & 8 of the claim form.
  • Attested copy of FIR & MLC (where applicable).
  • Attested copy of postmortem report.
  • Court of Inquiry (if held). It is recommended the cause of death /
    disability should clearly be brought out as ‘Accidental’, wherever applicable.

7.    The claim once submitted can be checked online with the data as reflected below:-

8.  On scrutiny of previous claims, it has come to notice that fwg are the common reasons of rejection / delay in processing of claims:-

  • Incorrect & incomplete docus.
  • Processing of claim even in case of Natural death / suicide or under intoxication.
  • Non submission of FIR, MLC & Post-mortem Report.
  • Nominee not been nominated in the DSP acct.
  • Salary acct not been converted to DSP acct.

9.    Broad overview of all features provided by SBI Bank in comparison with other banks is att as

Appx E’.

Ibid info needs to be disseminated till unit level for benefits of all rks and may be reiterated during regular bfg, roll calls and Sainik Sammelans.

  1. For info & necessary action pl.
Encl : As above. Copy to: Lt Col GSO-1 PS-3(P) For Adjutant General
All Brs of IHQ of MoD IMA, Dehradun OTA, Chennai OTA Gaya All Regt Centres All Trg Centres}For info pl.

DIAV       You are requested to disseminate the relevant info in the envt wrt pensioners & family pensioners.


Eligibilty — Indian ArmyJCOs & Other RanksLieutenant, Captain & MajorLt Colonel, Colonel Brigadier, Major General, Lt. General & General
DSP Account benefits/ features
Min. Balance  ATM cum Debit CardNIL (No monthly average balance required)___________________
Type of Debit cardInternational          Gold Debit Card #International Platinum Debit Card #
Free issue at all SBI branches
No annual maintenance charges
Free Add on card for spouse for joint account holders
Unlimited free transactions across all Bank ATMs
 # to be issued to those DSP account holders who consent to issuance of International Debit Card
Multi  City Cheques (Payable at par at all Branches–  25 cheques leaves free per month –  Request for Issue cheque book at all SBI branches
Easy Overdraft up to 2 Month’s Net salary, subject to min residual service of 6 months. #Overdraft limited to 2 month’s Net Salary with maximum of Rs.75,000/-Overdraft limited to 2 month’s Net Salary with maximum of Rs 1,50,000/-.Overdraft limited to
2     month’s    Net Salary                 with maximum     of                        Rs
#Adjusted from the next salary within a period of 6 months. Available only to Serving Personnel.
Concession in  annual locker rent10% of applicable rate
(w.e.f. 01.04.2022)
15% of applicable rate25 % of applicable rate
Setting up of Standing Instructions within SBIFree
Drafts issueFree (no restriction on number of free drafts and amount) at all SBI branches (if
issued through Salary Package account)
Processin• Char•es and Mar• in concession on Loan to DSP account holders
Home Loan100% processing fee waived (Property search and valuation fee etc. will be payable)
Car Loan100% processing fee waived5 % relaxation in margin
‘ Xpress Credit❑ 100% processing fee waived
Family Savings Account — SBI RishteySpouse, Children, Parents and Sibling are eligible to open “SBI Rishtey” — Family Savings Bank Account. Maximum 4 accounts may be opened under this facility. Following Benefits are available under these accounts :- No Minimum Balance requiredIssuance of Debit Card : FreeSMS Alert Charges   : FreeDemand Draft Issuance Charges : FreeAuto Sweep facility : Available (Optional)
Complementary Insurance Cover (For Serving Personnel)
Personal Accident Insurance (Death) CoverRs. 50 Lakhs
Additional PAI (On duty Death during action against Terrorists 1 Naxalites I Foreign enemy)Rs. 10 Lakhs
Permanent/ Total Disability CoverRs. 50 Lakhs
Partial Disability CoverRs. 50 Lakhs
Additional Covers applicable in case of Accidental Death only
Cost of Plastic Surgery in Burn casesMax. Rs.10 Lakh
Transportation of Imported MedicineMax. Rs.5 Lakh
Death after Coma after accident (more than 48 hours)Max. Rs.2 Lakh
Air AmbulanceMax. Rs.10 Lakh
Higher Education cover (Graduation) for one child aged between 18 to 25 years as on date of accident)_Max. Rs.5 Lakh
Max. Rs. 5 Lakh
Girl Marriage Cover for one girl child aged between 18 to 25 years as on date of accident)
Max. Rs.20,000
Family Transportation (cost of travel incurred by immediate 2 family members to reach place of accident)
Repatriation of mortal remainsMax. Rs.20,000
Ambulance chargesMax. Rs.15,000
Air Accidental Insurance (Death) cover
Air Accidental Insurance (Death) cover                                                                                             Rs.1 Crore


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