Coal workers granted expanded accident insurance coverage in recognition of role in boosting energy security

Addressing the media in Ranchi in September 2025, Kishan Reddy said Coal India Ltd (CIL), the state-owned coal mining company, was immediately increasing the ‘ex-gratia’ compensation payment to coal miners’ families in the event of a workplace fatality to a coal worker from Rs 15 lakh to Rs 25 lakh. The revised compensation structure came into effect on 17 September, the date of the Vishwakarma Diwas festival and the birthday of Prime Minister Narendra Modi. “This enhanced compensation applies equally to regular employees and contract workers and will be paid directly to the families of the deceased, ensuring timely and transparent delivery of support,” said the Ministry of Coal in a separate media announcement. “While ‘Zero Harm’ remains the mission, the enhanced ex-gratia reflects Coal India’s resolve to act swiftly and with compassion when a loss occurs and to stand firmly with the families affected.”

The minister also announced that the level of accident insurance for employees at state-owned coal companies, including CIL, has been increased to Rs 1 crore for employees and Rs 40 lakh for contractual workers. This will provide payment in the event of an accident at work that results in a worker requiring medical treatment, sickness absence or medical retirement from the job. The move is the first time accident insurance cover has been provided for non-employees at state-owned coal mines and coal processing facilities, and the benefit does not require any financial contribution from either employees or contractual workers.

According to the Ministry of Coal, by mid-September 2025, over 2.15 lakh regular employees and 44,000 contract workers were enrolled on the non-contributory accident insurance policy.

New uniforms

Alongside the financial support measures for workers, CIL is for the first time introducing new uniforms for all staff, from miners to the chairman and managing director, to “promote a shared identity, professionalism and a safety culture among Coal India employees”.

“From underground and open-cast mines to administrative offices and field projects, the uniform reflects unity, pride and dignity of the Coal India family, reinforcing a sense of belonging and cohesion across the workforce,” stated the Ministry of Coal.

In a post on X (formerly Twitter), Reddy wrote: “Under the visionary leadership of Hon’ble PM Shri @narendramodi, workers’ welfare has been kept at the very heart of policy and reforms. Our every step is guided by the belief that the strength of the sector lies in the well-being of its people.

“Today’s announcements are a promise to protect, respect and stand shoulder-to-shoulder with our workers. While we drive sustainable production and dispatch, we equally ensure that each of our workers and their families has a sense of belonging, financial security and pride. It is special that today’s announcement comes on the eve of Vishwakarma Jayanti and the 75th birthday of our Hon’ble Prime Minister Shri Narendra Modi ji, who has dedicated his life to the welfare of every citizen and turned the vision of ‘Antyodaya’ into a living reality.”

In a statement, the Ministry of Coal said: “These initiatives reaffirm Coal India’s commitment to ensuring the welfare, safety and dignity of its workforce. By combining strengthened social protection, comprehensive financial security and a cohesive identity, Coal India Limited is establishing new benchmarks in employee welfare and workforce management. Such measures ensure that India’s energy sector is supported by a secure, motivated and valued workforce and recognises coal workers as the backbone of India’s energy security.”

Energy and mineral needs

While speaking to reporters, Reddy said that coal and mining in general were crucial to achieving India’s goal of becoming self-reliant for its energy and critical mineral needs, stating the country now maintains coal stocks sufficient for 25 days, an improvement on previous levels, and has reduced coal imports compared to the previous year. In fact, according to the Indian Government’s Press Information Bureau, coal production in the country crossed the 1 billion tonne mark for the first time in the financial year 2024–25.

CIL chairman and managing director PM Prasad was present during the minister’s discussion with reporters.

Meanwhile, in a related development, the Union Government recently approved a ‘Performance Linked Reward’ (PLR) – i.e. bonus – of Rs 103,000 for all employees of CIL, its subsidiaries and Singareni Collieries Company Limited (SCCL), “as a reward for their dedication and relentless efforts”. The payout, which will benefit about 210,000 non-executive workers at CIL and 38,000 non-executive workers at SCCL, will cost CIL Rs 2,153.82 crore and SCCL Rs 380 crore.

The Government says it hopes the bonus, which will be credited on a pro-rata basis depending on the number of days worked, will increase staff morale and provide timely support to families during the festive season. According to the Coal Ministry, the incentive reflects the commitment of CIL and the government to worker welfare, motivation, and productivity.

“The PLR underlines our determination to recognise the contribution of non-executive workers, who are central to our mining operations and the vision of building an Atmanirbhar Bharat (self-reliant India),” the ministry said in a statement. “It is not just a financial reward, but a message of recognition, gratitude and empowerment for the Coal Pariwar [family] that fuels the nation.”

In a statement, Reddy emphasised that the various initiatives announced in autumn 2025 reflect the Union Government’s desire to ensure that “[economic] development goes hand-in-hand with dignity and welfare for every worker”.  He added the Government intended to “keep moving forward with renewed determination, ensuring that the coal sector remains a pillar of both progress and welfare”.