How Can Railway Employees Get INR 1 Crore Accident Compensation Without Paying a Premium? Here Are the Details

Indian Railways has announced a major programme for its employees in which it will provide accidental death compensation of INR 1 crore free of cost. Employees can claim compensation regardless of where the accident occurs, in a train accident, workplace accident or anywhere else unexpectedly. To be eligible, all that is needed is a ‘Salary Package Account’ connected to the employee’s salary, as clarified by Ashok Verma, Northern Railway GM.

The benefit was practically demonstrated when the family of Sushil Lal, a loco pilot from the Moradabad division, received the first INR 1 crore payout after he died tragically in March. The cheque was presented to his wife at the Northern Railway HQ in Delhi, with SBI officials facilitating prompt processing of the compensation.

How the INR 1 Crore Scheme Works

Employees just have to change or keep their salary account as a ‘Salary Package Account’ with any of the partner banks. Railways has partnered with several prominent banks, including SBI, to facilitate seamless enrolment. Once your salary is credited to such an account, the bank will automatically provide you with INR 1 crore accidental death insurance. There are no premiums or additional paperwork.

What Employees Need to Do

Open a salary account or convert your bank account to a Salary Package Account with an approved bank (for example, SBI RSP) and provide their employment proof and salary proof.

Maintain salary credits in that account (classification may not happen if they are not automatic).

Be sure to notify your bank if not automatically classified – Northern Railway and SBI are going to contact their members to make them aware of this new initiative. 

Upon the employee’s completion of the above process and enrolment, the bank will disburse INR 1 crore to the nominee (family member) in the event of accidental death to the employee without the employee or family member needing to take further action.

This zero-premium programme would not only provide financial security for railway families but also be part of Indian Railways dedication to the ongoing improvement of the welfare of employees.