Source: As worded by Indian Railways, Government of India

Indian Railways are liable to pay compensation to rail passengers against death or injury in train 'accident' as defined under Section 124 of the Railways Act, 1989.

Similarly, Railways are also liable to pay compensation against death or injury of rail passengers and platform ticket holders on account of 'untoward incidents' as defined under Section 124-A of the Act. Untoward incidents include death or injury on account of commission of a terrorist act, violent attack, robbery, dacoity, rioting, Shoot out, arson by any person in train carrying passengers or in the waiting hall, cloak room, reservation or booking office or on any platform or in any other place within the precincts of railway station or accidental falling of any passenger from a train carrying passengers. For claiming compensation the claimants are required to file their claims in Railway Claims Tribunal.

Compensation for death or permanent disability is Rs.4 lakhs.

In case of injuries the minimum amount is Rs.32,000/- and maximum is Rs.3.60 lakhs according to the gravity of injury sustained.

The Railway administration gives ex-gratia relief soon after an Accident/Untoward Incident normally at the following rates:

The maximum period for which ex-gratia payment is payable to the grievous injured will be 13 months. Payments made as ex-gratia not counted towards the amount decreed by Railway Claims Tribunal.