Indian Railways Offers ₹1 Crore Accident Compensation to Employees Without Premium

In a major welfare step, Indian Railways has rolled out a scheme offering ₹1 crore compensation to the families of its employees in the event of accidental death, with no premium payment required. This move is aimed at enhancing the financial security of railway personnel and their families, given the high-risk nature of their jobs.

Why in News?

This announcement gained attention after the first payout under the scheme was made to the family of Sushil Lal, a loco pilot from Moradabad division who died in an accident while on duty. His wife, Priya Singh, was handed a ₹1 crore cheque by Northern Railway officials in Delhi on June 21, 2025.

How Does the Scheme Work?

• Employees are not required to pay any premium.
• They must have their salary account registered as a “Salary Package Account”.
• Banks partnered with Indian Railways provide the compensation in case of accidental death.
• The scheme applies regardless of the accident location – on duty, off duty, or outside the workplace.

Bank Partnership & Account Requirement

• Railways has agreements with major banks across India (e.g., SBI).
• Employees must ensure their salary account is converted into a Salary Package Account with a partner bank.
• Upon accidental death, the partner bank processes the claim and disburses ₹1 crore to the nominee.

First Beneficiary: Case of Sushil Lal

• Died after falling from a train while deboarding post-duty in March 2025.
• His wife and two children (aged 8 and 5) received the compensation.
• SBI processed the insurance claim quickly with assistance to the family.

Awareness & Implementation

Indian Railways plans to spread awareness through,

• Posters at railway stations and offices
• Help from major railway unions like:
• All India Railway Men’s Federation (AIRF)
• National Federation of Indian Railwaymen (NFIR)
• The aim is to ensure maximum employee coverage under the scheme.

Significance and Benefits

• Financial security for families of employees in high-risk roles.
• No burden of insurance premium deductions.
• Boosts employee morale and shows that the organization stands with its workers.
• Enhances welfare infrastructure within Indian Railways.