₹60 Lakh PAI, ₹1 Crore Air Cover in Army’s New MoU with IDFC FIRST
In an important move to improve soldiers’ and veterans’ financial security, the Indian Army has signed a three-year Memorandum of Understanding (MoU) with IDFC FIRST Bank. The deal, which will be applicable until February 2029, aims to deliver personalised banking facilities and stronger insurance for serving staff, the retired veterans, and their families.
The collaboration adds an Insurance cover of ₹60 lakh which is known as a Personnel Accidental Insurance (PAI) cover. Importantly, this benefit will function without the conventional mandate that salaries and pension credits be added into the balance. Eligibility, rather, will be tied to the holding of minimum monthly credits, which will allow personnel, who operate several accounts, or have a multitude of financial relationships, greater flexibility.
In addition to basic insurance, also on the basis of the base insurance, the MoU adds a series of other welfare-orientated provisions to improve the safety cushion of Army families. These benefits also include an additional ₹35 lakh nominee cover, to ensure dependents are financially safeguarded in an unexpected disaster. Members will also receive ₹1 crore air accident insurance, adding a good deal of protection when they travel by air.
Acknowledging the significance of long-term family welfare, the agreement also allocates ₹4 lakh for higher education cover. This piece is expected to help families help their children achieve academic goals. It further provides financial support of up to ₹2 lakh for the marriage of a girl child and is a good testament towards the Army’s overall dedication to social welfare and welfare of the family.
A joint venture between IDFC FIRST Bank and the Indian Army officials explained that what it means is bringing the financial system in sync to build for those serving the country both security and access. It seeks to provide tangible, effective incentives by normalizing banking and extending insurance coverage that addresses the specific requirements of the armed forces.
The MoU reflects the Indian Army’s continuing commitment to the secure, dignified, and well-behaved lives of its soldiers, on the battlefield and in the world beyond.
