Big News for Railway Employees! Indian Railways Announces ₹1 Crore Accident Compensation for Employees Without Premium, know details
Indian Railways has introduced a new scheme offering ₹1 crore accidental compensation to its employees without requiring them to pay any insurance premium. This compensation benefit is linked to Salary Accounts with partner banks and aims to provide financial security to Indian Railways employees and their families in the event of accidental death.
Rs. 1 crore Accident Compensation for Indian Railways Employees
Indian Railways Announces ₹1 Crore Accident Compensation scheme recently gained nationwide attention after the first compensation amount payout was made to the family of Sushil Lal. He was a loco pilot from the Moradabad division who tragically died in an accident while on duty. On June 21, 2025, his wife Priya Singh received a cheque of ₹1 crore from Northern Railway officials in Delhi.
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Under this scheme, all railway employees holding a Salary Account with a partner bank State Bank of India, is automatically eligible for the accident compensation scheme. The victim’s legal heirs are eligible to apply for the compensation regardless of the cause of the accident that occurred on duty, off duty, or outside the workplace.
No premium is required for Accident Compensation
There is no premium deduction from employees’ salaries. In the event of accidental death, the partner bank processes the claim and disburses the compensation amount directly to the nominee of the employee.
To spread awareness and enrollment for this scheme, Indian Railways is launching a campaign program with posters at stations and offices, along with support from major railway unions like the All India Railway Men’s Federation (AIRF) and the National Federation of Indian Railwaymen (NFIR).
This move shows that Indian Railways is now focusing on employee welfare, offering peace of mind to railway workers working in high-risk roles.
