Madhya Pradesh: Cops Can Get ₹1 Crore Insurance In Accident Cases; Over 30k Either Unaware Of The Scheme Or Have Not Updated Their Bank Accounts

Bhopal (Madhya Pradesh): In a significant welfare push, the Madhya Pradesh Police Headquarters (PHQ) has introduced the ‘Police Salary Package’ (PSP), under which state police personnel can avail up to Rs 1 crore in insurance coverage in the event of an accident.

However, officials say over 30,000 police personnel are either unaware of the scheme or have not updated their bank accounts to benefit from it.

The PSP has been rolled out to cover the state’s 1.6 lakh police personnel, replacing the older State Government Salary Package (SGSP), which included only nominal facilities. The new package was launched in partnership with multiple banks to enhance financial safety nets for police officers, whose jobs are marked by risk and modest salaries.

Despite the initiative, a large number of personnel have yet to convert their salary accounts from SGSP to PSP. Without this update, they remain ineligible for full benefits. The PHQ has already received three complaints in the past month in which the families of deceased officers received only Rs 15 lakh, instead of the Rs 50 lakh or more they were entitled to. When questioned, bank officials said that officers had not upgraded their account type, and therefore the higher insurance coverage did not apply.

Insurance cover up

Under the PSP scheme, the banks offer free accidental insurance, personal insurance, locker facilities and more through the police salary accounts.

• Rs 1 crore for accidental death

• Rs 1 crore for disability

• Rs 10 lakh for natural death

• Rs 6–15 lakh assistance for dependent children (as per age and bank terms)

Statewide alert

The Police Welfare Branch has issued formal instructions to the in-charges of all 119 police units in the state. These instructions mandate that officers must inform all police personnel under their jurisdiction about the new PSP scheme and ensure they visit their banks to update their salary accounts accordingly. This move aims to prevent future discrepancies in insurance payouts.

AIG’s message

"Every policeman should be aware and give priority to the family along with duty. First of all, go and update your bank account in the PSP plan. Also, give information about your bank accounts and PSP plan to the family members," said Anshuman Agarwal, AIG, Police Welfare, PHQ.