Karnataka State Road Transport Corporation (KSRTC) has announced a significant enhancement in its Employee Family Welfare Scheme, doubling the compensation offered to families of employees who pass away due to non-accidental causes.
Effective September 1, 2025, the total compensation will rise to ₹20 lakh, up from the previous ₹10 lakh.
This revised package includes ₹14 lakh from KSRTC and an additional ₹6 lakh through a new partnership with the State Bank of India (SBI).
The move is being hailed as a landmark welfare measure in the state-run transport sector, aimed at providing greater financial security to bereaved families.
Gradual Increase Reflects Commitment to Employee Welfare
KSRTC’s welfare compensation has undergone several revisions in recent years.
Until October 2023, families of employees who died due to medical conditions such as heart attacks, cancer, or kidney failure received ₹3 lakh.
That amount was increased to ₹10 lakh last year, and now the latest revision brings the total to ₹20 lakh.
According to KSRTC officials, the corporation has already disbursed ₹10 lakh each to the families of 157 employees who passed away due to non-accidental causes since the last revision.
The latest enhancement reflects KSRTC’s ongoing commitment to improving its welfare framework. It aims to provide stronger financial security for the families of its employees.
SBI Partnership Adds New Layer of Support to KSRTC Employees
For the first time, KSRTC has partnered with SBI to extend additional financial support to affected families.
The ₹6 lakh contribution from SBI will be provided in cases of death due to natural or medical causes, supplementing KSRTC’s own welfare payout.
A KSRTC spokesperson noted, “Our employees are the backbone of this organization. This enhancement in compensation is a step towards ensuring that their families remain financially secure during difficult times. With SBI’s support, the welfare measures have become stronger.”
KSRTC Accidental Deaths Continue to Be Covered Under Separate Insurance
KSRTC already provides ₹1 crore compensation through accident insurance for deaths resulting from personal or duty-related accidents.
This coverage remains unchanged and is separate from the revised welfare scheme for non-accidental deaths.
The corporation has clarified that the new ₹20 lakh package applies only to deaths caused by medical conditions or other natural causes, and is part of its broader commitment to employee welfare.
Leadership Perspective and Operational Context
KSRTC Managing Director Akram Pasha, who previously served as Labour Commissioner, emphasized the human impact of the policy change.
“We have 33,000 staffers in KSRTC, and 35 to 50 non-accidental deaths occur every year. Having served in labour administration, I understand the pain families go through. This revision is about dignity and security for them,” he said.
The decision will strengthen trust between KSRTC and its workforce. It also reinforces the corporation’s reputation as a socially responsible public sector employer.
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