Coal India Limited (CIL), the country’s largest coal producer, has announced a significant enhancement in its employee welfare measures by raising the accidental insurance cover for regular staff to ₹1 crore.
The decision, unveiled by Union Coal and Mines Minister G. Kishan Reddy on September 12, 2025, is part of a broader package of reforms aimed at improving safety nets and working conditions in one of India’s most hazardous industries.
The revised insurance policy will come into effect from September 17, coinciding with Vishwakarma Diwas and the birthday of Prime Minister Narendra Modi.
Contractual workers will also benefit from the initiative, receiving coverage of ₹40 lakh under a separate policy.
Coal India Ex Gratia Compensation for Mine Accidents Also Increased
Alongside the insurance upgrade, Coal India has increased the ex gratia compensation for fatalities resulting from mine accidents.
The payout has been raised from ₹15 lakh to ₹25 lakh, reflecting the government’s recognition of the risks faced by coal workers and its commitment to supporting their families in case of tragedy.
Minister Reddy described the move as a “historic step” and emphasized that it aligns with the government’s broader goals of economic development, employment generation, and worker protection.
Coal India Chairman and Managing Director P.M. Prasad was present during the announcement in Ranchi.
Coal India Uniforms Introduced to Foster Unity and Discipline
In another first since Independence, Coal India will introduce standardized uniforms for all employees—from miners to senior management, including CMDs of subsidiaries and staff of Mine Developer and Operator (MDO) units.
The initiative aims to instill a sense of discipline, unity, and organizational identity across the workforce.
Coal India will roll out uniforms on September 17, marking a symbolic shift in the company’s internal culture and visual identity.
Context: Safety and Reform in the Coal Sector
The announcement comes amid ongoing efforts to reform the coal sector and reduce India’s dependence on imports.
Minister Reddy highlighted that the country saved ₹60,000 crore last year by curbing overseas coal purchases.
Despite technical challenges in certain industries, such as steel, the government remains committed to boosting domestic production and improving operational transparency.
Coal India expects the ₹1 crore insurance cover to provide greater financial security to workers and their families, especially given the high-risk nature of mining operations.
It also complements the government’s push for modernization and safety in coal extraction and handling.
National Critical Minerals Mission and Strategic Outlook
The minister also reiterated the government’s focus on strategic resource development through the ₹32,000 crore National Critical Minerals Mission.
Exploration efforts have already begun in Argentina and Zambia, with India securing five lithium blocks in Argentina through a government-to-government agreement.
These initiatives are part of India’s broader strategy to secure essential minerals for energy transition and reduce reliance on foreign sources.
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