Singareni’s ₹1 Crore Accident Insurance Emerges As Welfare Model
Employee welfare initiative launched in 2024 disburses ₹41 crore in accident insurance claims, offering financial security to workers and their families.
HYDERABAD: The ₹1-crore accident insurance scheme that Singareni Colleries Ltd offered to its workers, launched on the initiative of the Telangana government in 2024, has opened a new chapter in employee welfare. It has benefitted 45 families, and Rs 41 crore was disbursed to the beneficiaries.
Described as the largest welfare initiative in Singareni’s history, the scheme covers accidental death and both partial and permanent disability up to Rs 1 crore, with some banks offering coverage up to Rs 1.25 crore, said an official of Singareni. It was launched by Chief Minister A. Revanth Reddy.
Under special arrangements with multiple banks, employees holding corporate salary accounts receive coverage without any premium burden. Punjab National Bank, Bank of Baroda and Indian Overseas Bank provide up to Rs 1.25 crore, while State Bank of India, Union Bank of India and Canara Bank offer up to Rs 1 crore.
To date, SBI has paid nearly Rs 28 crore to 32 families and Union Bank about Rs 13 crore to 13 families, as per the officials of Singareni. Free natural death coverage of Rs 10–15 lakh is also available, and SBI recently introduced a Rs 50 lakh health insurance option at a nominal annual premium that covers the employee, spouse and two children.
The scheme has also been extended to nearly 30,000 outsourced workers through bank-linked arrangements. PNB is offering Rs 40 lakh, and HDFC Bank Rs 30 lakh for outsourced staff, and it includes continued coverage for retirees receiving pensions through participating banks, according to officials of Singareni.
Satyanarayana, an employee of Singareni, who used to work deep inside the mine, lost both his legs in an accident, and received Rs 1 crore in assistance.
The families of Santosh and Ranjith Kumar, whose sudden deaths were financially mitigated by the payouts. Widely appreciated by employees and trade unions, the model has inspired other coal companies, state utilities and central agencies to explore similar welfare measures, officials of Singareni said.