Indian Railways Introduces â‚ą1 Crore Accident Insurance for Employees with Zero Premium Cost.

National

In June 2025, Indian Railways rolled out a landmark welfare initiative offering its employees ₹1 crore in accident compensation—without any premium deductions—through their salary package bank accounts, strengthening financial security for staff in high-risk roles.


      - This newly launched scheme provides a â‚ą1 crore compensation payout to railway employees’ families in case of accidental death, with no insurance premiums deducted from salaries. Eligibility requires only a Salary Package Account with a partner bank (e.g., SBI).

      - The scheme’s debut claim was granted to the family of Sushil Lal, a loco pilot from Moradabad division who tragically died in a March 2025 accident. Northern Railway officials handed over a â‚ą1 crore cheque on 21 June in Delhi.

      - Post-accident, the partner bank verifies the claim and directly disburses the â‚ą1 crore to the nominee, irrespective of whether the fatality occurs on or off duty. This streamlined process underscores speed and ease.

Main Point :-   (i) The scheme applies to all railway employees nationwide. Indian Railways is collaborating with major unions—All India Railway Men’s Federation (AIRF) and National Federation of Indian Railwaymen (NFIR)—and using posters and awareness campaigns to promote enrolment.

      (ii) Recognising the occupational hazards faced by railway staff, this initiative provides critical financial support to families and boosts staff morale. It signals Indian Railways’ commitment to its workforce’s well-being.

(iii) This â‚ą1 crore scheme complements standard ex-gratia payments and existing insurance programmes, offering a more comprehensive safety net for employees and ensuring broader welfare coverage.
About Indian Railways (IR)

Minister : Ashwini Vaishnaw
Headquarters: New Delhi
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