In a landmark move aimed at ensuring the welfare and financial security of its workforce, the Indian Railways has launched a new accident compensation scheme that offers ₹1 crore compensation to the families of employees in the event of accidental death—without requiring any insurance premium. This initiative reflects the government’s commitment to supporting employees engaged in high-risk operations across the country’s vast railway network.
The scheme came into the spotlight following its first payout to the family of Sushil Lal, a loco pilot from the Moradabad division, who tragically lost his life while on duty. On 21st June 2025, his wife Priya Singh was handed over a ₹1 crore cheque by Northern Railway officials in a formal ceremony held in New Delhi. This emotional moment brought national attention to the much-needed initiative and reaffirmed Indian Railways’ support for its frontline personnel.
To be eligible for the scheme, employees only need to maintain a Salary Package Account with one of the partner banks, such as the State Bank of India (SBI). Once the account is linked under the scheme, the bank provides the compensation of ₹1 crore to the employee’s family in the unfortunate event of an accidental death. There are no premiums, paperwork, or annual renewals required from the employees, making this a seamless and hassle-free protection plan.
Recognizing the risky nature of many railway jobs, the Indian Railways is actively planning to promote the scheme across all zones. Railway unions will play a key role in spreading awareness among workers. Additionally, posters, brochures, and information boards will be displayed at stations, offices, loco sheds, and across railway divisions, ensuring that every eligible employee understands and avails of this life-saving benefit.
This initiative not only offers financial reassurance to employees but also instills a sense of trust and belonging. By eliminating the burden of premium payments, the scheme ensures that even the lowest-paid railway employees are covered under a significant financial safety net.
The ₹1 crore compensation scheme marks a progressive step in employee welfare, reinforcing the Railways’ role not just as an employer, but as a guardian of its people’s well-being and future.
