BENGALURU: The Bengaluru Metropolitan Transport Corporation (BMTC) has doubled the accident insurance cover for eligible employees from Rs 50 lakh to Rs 1 crore under a revised agreement with Union Bank of India. The enhanced benefit is intended to strengthen financial protection for employees and their families in the event of accidental death or serious disability.

The revised agreement was signed on October 8, 2026, continuing the partnership between BMTC and Union Bank of India. The earlier three-year agreement, signed in 2023, has been renewed for another three-year period, according to reports published on October 24.

The enhanced insurance benefits apply to BMTC employees who maintain their salary accounts with Union Bank of India. The revised arrangement includes provisions for accidental death, permanent disability, death due to other causes and medical assistance.

Accident insurance increased from Rs 50 lakh to Rs 1 crore

Under the revised agreement, the insurance compensation payable to the nominee of an eligible employee in the event of accidental death has been increased from Rs 50 lakh to Rs 1 crore.

The coverage is linked to the employee maintaining a salary account with Union Bank of India. The scheme is intended to provide financial assistance to the employee’s family following an accidental death.

The updated agreement also includes benefits for permanent partial disability and permanent total disability resulting from accidents. Eligible employees may receive insurance coverage of up to Rs 1 crore under these categories, subject to the policy’s terms and conditions.

The enhanced cover is part of BMTC’s employee welfare measures and follows earlier efforts to strengthen insurance protection for transport corporation staff.

Compensation for death due to other causes

The revised arrangement also provides financial assistance in cases where an employee dies due to natural or other non-accidental causes.

The reported compensation structure is based on the employee’s monthly salary:

  • Employees earning less than Rs 25,000 a month: Rs 5 lakh.
  • Employees earning more than Rs 25,000 a month: Rs 10 lakh.

These amounts are separate from the enhanced accidental-death insurance benefit. Employees and their nominees would need to check the applicable policy conditions to understand eligibility and claim requirements.

Additional benefits for permanent disability

The revised insurance arrangement includes benefits for employees who suffer permanent partial or permanent total disability due to an accident.

According to reports on the agreement, eligible employees may receive insurance coverage of up to Rs 1 crore, along with additional compensation linked to RuPay Platinum debit card benefits.

The reported additional cover varies according to monthly salary:

  • Employees earning less than Rs 25,000 a month: an additional Rs 4 lakh.
  • Employees earning more than Rs 25,000 a month: an additional Rs 15 lakh.

The additional benefits are subject to the terms of the relevant insurance and debit card arrangements. Employees should confirm the exact conditions with BMTC or Union Bank of India before relying on a particular benefit amount.

Medical assistance for hospitalisation

The agreement also provides medical assistance of up to Rs 30,000 annually for eligible employees who are admitted to hospital as inpatients.

This benefit is intended to offer financial support for qualifying hospitalisation expenses. The amount available and the conditions for reimbursement depend on the scheme’s rules.

Together, the insurance and medical provisions are designed to provide a broader safety net for BMTC employees and their families.

BMTC continues employee welfare measures

BMTC, which operates public bus services across Bengaluru, employs a large workforce of drivers, conductors, technical staff and administrative personnel. The corporation has introduced several welfare measures in recent years, including insurance support and compassionate appointments for eligible family members of deceased employees.

The revised agreement with Union Bank of India builds on those efforts by increasing accidental-death compensation and maintaining additional benefits for disability and hospitalisation.

For employees, the enhanced coverage could provide greater financial security in the event of an accident. However, the benefits are linked to the eligibility conditions of the scheme, including the requirement for a salary account with the participating bank.

Employees seeking clarification about coverage, nominations or claims can contact BMTC’s relevant administrative department or Union Bank of India to confirm the applicable policy terms.