Bihar Govt Launches ₹5 Lakh Accident Death Relief Scheme for Traders – Here’s What You Need to Know

As the Bihar Assembly elections draw closer, the Nitish Kumar-led government has rolled out a series of welfare schemes, and the latest to join the list is a dedicated relief initiative for traders. On July 15, the state cabinet approved the “Bihar Vyavsayi Durghatna Mrityu Anudan Yojana 2025”, under which the legal heirs of a trader who dies in an accident will receive a financial compensation of ₹5 lakh.

This announcement is seen as a significant move aimed at strengthening support for the non-corporate, unorganised trading community in Bihar.

🧾 What Is Bihar Vyavsayi Durghatna Mrityu Anudan Yojana?

The Bihar Trader Accident Death Compensation Scheme 2025 has been designed to provide financial security to families of traders who die in unfortunate accidents. The scheme will provide a one-time compensation of ₹5 lakh to the immediate family members of a deceased trader.

The relief, however, will be applicable only in accidental death cases and will not include natural deaths or suicides. This move is primarily targeted at non-corporate traders who are registered with Bihar’s commercial tax department.

📌 Who Will Benefit from the Scheme?

• The trader must be a resident of Bihar

• The business must be registered under the Bihar Commercial Tax Department

• The trader must be paying taxes under the Bihar VAT Act, 2005 or the Goods and Services Tax Act, 2007

• The trader should fall under the non-corporate category

• The death must be accidental; no compensation is offered in cases of natural death or suicide

This initiative is not applicable to traders in the corporate or cooperative sectors and is specifically aimed at small and medium-scale businesses.

✅ What Kind of Support Will the Family Receive?

If a registered trader meets an accidental death, the Bihar government will provide ₹5 lakh as a direct financial relief to the legal heirs. This is intended to provide immediate financial support and a form of social security to the bereaved families.

❌ What’s Not Included in the Scheme?

• Disability benefits are currently not covered

• Death due to natural causes or suicide does not qualify

• Traders outside the purview of Bihar’s commercial tax registration are not eligible

🗳️ Political Context Behind the Scheme

This scheme has been announced just months ahead of the Bihar Assembly Elections, likely to be held in October–November 2025. The government has already launched several schemes for farmers and youth, including:

• The Mukhyamantri Pratigna Internship Scheme

• Increased social security pensions from ₹400 to ₹1100

• Diesel subsidy transfers for farmers

With this scheme, the government aims to win the trust of Bihar’s vibrant but often vulnerable small business community.

📍 How Will the Scheme Be Implemented?

While the scheme has been officially approved, detailed operational guidelines—such as application procedure, documentation, and timelines—are expected to be released soon by the Department of Commercial Taxes in Bihar.

📞 What Should Traders Do Now?

• Ensure their business is formally registered with the Bihar Commercial Tax Department

• Confirm their tax filings are up-to-date

• Stay updated for the official notification and application process from the state government

🔚 Conclusion

The Bihar Vyavsayi Durghatna Mrityu Anudan Yojana is a significant step toward ensuring financial protection for the state’s trader families. It acknowledges the risks that non-corporate entrepreneurs face daily and brings them within the social security net.

As the political climate heats up, such schemes are likely to become a key point of discussion—but regardless of the timing, the relief it promises could be a lifeline for many families in Bihar’s trading community.