Bengaluru: The govt’s motor transport and allied workers welfare board, established in late 2024 to provide social security to drivers, cleaners and allied workers in the sector, is facing criticism over delays in compensation payouts. The labour department has collected some Rs 140 crore, but it has disbursed compensation to only 45% eligible families. Data shows 55% of families entitled to payouts — following deaths due to accidents, heart attacks, or natural causes — are yet to receive compensation. Data shows Rs 8.7 crore was distributed to 175 accident victims’ families, each receiving Rs 5 lakh. But the number of deaths recorded under the welfare board in the 2025–26 fiscal stands at 389, including 380 commercial vehicle drivers, two cleaners, and seven mechanics. Of these deaths, 302 were due to accidents, 10 due to heart attacks, and 77 from natural causes. While compensation was provided to 175 accident victims’ families, only two of the 87 cases involving heart attacks and natural causes received payouts. Officials attributed the delays to procedural hurdles involving the finance department. They say the labour department has been asked to submit an “action plan” for expenditure approvals which has led to frustration within the department. “How can you provide an action plan for accident victims’ compensation?” an official said. “We have been ridiculed by transport workers unions who say the purpose of setting up the welfare board has been defeated.” Labour minister Santosh Lad insisted there was no shortage of funds and that disbursements are being made as cases are processed. “There may be some technical delays, but those eligible are being paid,” he said. S Ravikumar, joint commissioner, labour department, said Rs 15 crore was allocated to address pending claims. He said verification procedures are currently underway. “Identifying next of kin and ensuring the money goes to them is a slightly long-drawn process,” he said. Besides compensation, the department has provided educational assistance of Rs 10,000 per year to 294 children. It has also proposed an additional Rs 50 crore allocation to the finance department for other welfare schemes, including medical reimbursements and hospitalisation claims.
