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Coal India Raised Compensation for Workers Dependents to 25 Lakh

In a major relief for coal workers, Coal India Limited (CIL) has increased the ex-gratia payment for dependents of workers who die in workplace accidents from Rs. 15 lakh to Rs. 25 lakh. The decision, which came on the occasion of Vishwakarma Puja and Prime Minister Narendra Modi’s birthday, was announced earlier by Union Coal Minister G. Kishan Reddy and formalised through an order issued by CIL headquarters.

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Corporate Insurance Cover for Workers

Along with the enhanced compensation, Coal India has tied up with banks to provide corporate salary insurance cover for its workforce. Regular employees will now receive an additional Rs. 1 crore insurance cover, while contract workers will be entitled to Rs. 40 lakh coverage. CIL Chairman PM Prasad has instructed all coal companies to expedite the process of routing contract workers’ wages through banks so that they can benefit from the scheme.

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Unions Welcomed the Move

Labour leaders have welcomed the increase but demanded further expansion of welfare measures. Virendra Prasad Ambasth, national secretary of INTUC and acting president of National Colliery Mazdoor Union, said that while the step is positive, more enhancements in facilities are needed, including revival of the Medical Unfit Female VRS Scheme. Dharamjeet Chaudhary of BMS said the move is a “big gift” for coal workers and reflects the Centre’s commitment to their welfare.

Focus on Zero Accident and Welfare

Coal India reiterated its commitment to worker safety, stating that efforts are underway to achieve zero accident targets across mines. The company said it continues to invest in safety and welfare schemes to improve the living and working conditions of both regular and contractual workers.

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Editorial Desk Written by: Editorial Desk • Wed, Sep 17th, 2025 Updated: Wed, Oct 29th, 2025
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Editorial Desk
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