Singareni leads India with historic ₹1.25 crore accident insurance scheme

Hyderabad: The Telangana government has introduced a ₹1 crore accident insurance scheme aimed at providing financial protection for the families of Singareni workers. This initiative has already delivered positive outcomes, assisting over 45 families since its inception.

Many families have expressed their gratitude for the scheme, acknowledging its significance for Singareni employees. The Singareni Collieries Company Limited (SCCL) noted in a statement that this welfare programme not only benefits local employees but also sets a precedent nationwide, offering security to numerous families impacted by unforeseen accidents.

Singareni has become the first organisation in India to launch an accident insurance scheme with coverage up to ₹1.25 crore. Launched in 2024 by Chief Minister A. Revanth Reddy and Deputy Chief Minister Bhatti Vikramarka Mallu, the scheme is regarded as a groundbreaking welfare initiative in the insurance sector.

This programme has inspired numerous coal companies and other organisations to consider implementing similar welfare initiatives. Thanks to arrangements made by Singareni and the state government, several banks now offer accident insurance coverage to Singareni employees who maintain corporate salary accounts.

For instance, Punjab National Bank, Bank of Baroda, and Indian Overseas Bank provide accident insurance coverage of up to ₹1.25 crore, while State Bank of India, Union Bank of India, and Canara Bank offer coverage up to ₹1 crore. Currently, Singareni processes salaries for 40,275 employees through various banks operating in the region.

Typically, employees are responsible for paying premiums under standard insurance schemes. However, the Telangana government’s initiative allowed Singareni to negotiate terms that enable employees to receive insurance coverage without paying any premiums. This scheme has garnered considerable praise from both employees and trade unions.

The unexpected passing of a worker can lead to significant emotional and financial challenges for their family. The accident insurance scheme provides compensation ranging from ₹1 crore to ₹1.25 crore, assisting families in managing financial responsibilities, including children’s education and other future commitments.

In the past two years, the State Bank of India has disbursed nearly ₹28 crore to the families of 32 deceased employees, while Union Bank of India has provided approximately ₹13 crore to the families of 13 employees. The scheme also offers coverage for employees who may suffer permanent or partial disabilities resulting from accidents.