The drivers' insurance scheme known as the Meghalaya Personal Accident Insurance Scheme for all professional drivers was made available from the SBI's general group personal accident insurance policy, they said.
The MoU was signed between W Nongsiej, joint secretary transport department and A Lyndem, AGM in the presence of transport minister A T Mondal.
Under the scheme, drivers who want to avail the benefits have to open a zero balance savings bank account in any of the SBI branches.
"In the event of any accidental death, the bank will credit the insured sum in the account of the nominee within 30 days from the date of the bonafide submission of relevant documents," Lyndem said.
According to the agreement, Meghalaya government has to undertake to credit a corpus fund into a corporate account with SBI, operated and maintained by the government itself.
The policy is valid for 12 months from the date of debit of premium of the account holder and subject to annual renewal, officials said.
The driver insurance scheme is significant in the wake of several deaths reported in this hill state's zig zag winding roads.
Police said there were 229 road accidental deaths last year alone and 184 in the year before last.