How Should Safety Measures be Enhanced in High-Risk Workplaces Despite Increased Compensation for Fatal Accidents?

On September 12, 2025, Union Coal Minister G. Kishan Reddy announced that Coal India Ltd (CIL) would increase its ex gratia compensation for miners who suffer fatal accidents—from ₹15 lakh to ₹25 lakh, effective September 17, 2025. This announcement, part of broader government efforts to strengthen labour welfare in high-risk sectors, aims to provide better financial relief to families of workers in a dangerous industry.

For families of miners living in mining towns, this change is deeply significant—it softens the blow of loss and provides more security. It acknowledges the real cost of lives lost underground. For workers, it may spur more vigilance about safety standards, knowing that the institution recognizes the risk in measurable ways. For HR and operations in mining, there is also pressure: safety cannot just be verbalized; practices must match compensation. If safety lapses occur, families will expect more than money—they’ll expect accountability. Workers may feel more valued, but also expect changes in safety norms to accompany this increase.

This interacts with legal regimes around the Mines Act, Workmen’s Compensation Act, and possibly the Factories Act for safety compliance. The ex gratia is extra-statutory, but communicates a standard of care. HR must ensure that accident records, investigations, preventive safety audits, and hazard mitigation are strengthened. Policies should incorporate training, maintenance reporting, safety gear provisioning, and emergency protocols. Senior leaders must be seen endorsing a safety culture—not treating compensation as a substitute for prevention. Globally, many mining companies tie ex gratia or insurance levels to safety performance. Coal India has laid a marker; HR must convert that into safer behavior everywhere.

What safety changes would you insist on in a high-risk workplace if compensation increases but risk remains the same?

If compensation increases but the risk remains the same in a high-risk workplace, it's crucial to insist on several safety changes to ensure the wellbeing of the workers. Here are some practical steps that could be taken:

1. Enhanced Safety Training: Regular and comprehensive safety training should be mandatory for all employees. This training should cover all potential hazards in the workplace and how to avoid them. It should also include emergency response procedures.

2. Regular Safety Audits: Regular safety audits can help identify potential risks and hazards before they cause accidents. These audits should be thorough and cover all areas of the workplace.

3. Improved Safety Equipment: Providing high-quality safety equipment is essential. This includes protective clothing, helmets, gloves, and any other equipment necessary for the specific workplace. Regular checks should be conducted to ensure all equipment is in good working order.

4. Clear Safety Policies: Clear, written safety policies should be in place and communicated to all employees. These policies should cover all aspects of safety in the workplace, including procedures for reporting safety concerns.

5. Promotion of a Safety Culture: A safety culture should be promoted at all levels of the organization. This means that safety should be a priority for everyone, from the top management down to the newest employee. This can be achieved through regular communication about safety, recognition of safe behavior, and consequences for unsafe behavior.

Remember, while increased compensation can provide some financial relief to families in the event of a fatal accident, the ultimate goal should always be to prevent these accidents from happening in the first place.