MOU signed in the presence of TN CM M.K. Stalin with leading banks to provide free life and accident insurance for government employees

In the presence of the Hon’ble Chief Minister of Tamil Nadu, Thiru M.K. Stalin, a Memorandum of Understanding (MoU) was signed today (19.5.2025) at the Chief Secretariat with seven leading banks to offer free banking services, including life and accident insurance coverage for government employees.

Hon’ble Chief Minister Thiru M.K. Stalin, who shows deep concern for the welfare of government employees and their families, had earlier issued an order granting earned leave encashment to government employees and announced several new benefits for their welfare in the budget session of the Assembly. Just like in developed countries where individual life and accident insurance is mandatory, Tamil Nadu too is now taking progressive steps in that direction.

In today’s context, individuals have to pay a significant amount from their pockets to get life and personal accident insurance. Now, under this initiative, the government has facilitated with leading banks to offer these insurances to government employees free of cost, based on the idea of welfare governance. Following discussions, several banks have come forward voluntarily to provide these benefits.

Earlier, the Hon’ble Finance Minister had mentioned in the budget session that in case a government employee dies unexpectedly in an accident or becomes permanently disabled due to an accident, the family would receive a financial assistance of ₹10 lakhs under personal accident insurance. If the deceased has an unmarried daughter of marriageable age, she would receive ₹5 lakhs for marriage expenses. If there are two such daughters, the family would receive ₹10 lakhs. In case the daughter is pursuing higher education in college, she would be granted ₹10 lakhs under educational assistance. If the employee dies due to natural causes during service, ₹10 lakhs will be paid under life insurance. The banks confirmed they would provide these benefits.

The seven leading banks that agreed to provide these benefits are: State Bank of India, Indian Overseas Bank, Indian Bank, Karur Vysya Bank, Axis Bank, Bank of Baroda, and Union Bank of India. These banks have offered to provide the services without any charges to government employees who maintain salary accounts with them.

In addition to these benefits, these banks also came forward to provide concessional personal loans, home loans, and educational loans to government employees.

In the presence of Hon’ble Chief Minister Thiru. M.K. Stalin, the MoU was signed by the Director of Treasuries and Accounts on behalf of the government and senior officials of the seven leading banks to confirm these services.

Present at the event were:

• Hon’ble Finance Minister Thiru Thangam Thennarasu
• Chief Secretary Thiru N. Muruganandam, IAS
• Additional Chief Secretary (Finance) Thiru T. Udhayachandran, IAS
• Secretary (Finance – Expenditure) Thiru S. Nagarajan, IAS
• Director of Treasuries and Accounts Thirumathi T. Thirusri, IAS
• and senior officials from the participating banks.

Release: Director, Department of Information and Public Relations, Chennai – 9