The mishap occured at about 5.20 pm when seven coaches of the Hubli-Miraj passenger train derailed 16km from Belgaum due to flash floods triggered by incessent rains, claiming two lives, a Railway Ministry spokesperson said.
He said tracks were washed away at sections because of floods which led to the derailment.
Railway Minister C P Joshi announced Rs five lakh to the next of the kin of the deceased and Rs one lakh for those who sustained grevious injuries. Besides, he announced Rs 25,000 for those who sustained simple injuries.
Medical relief trains were rushed from Castle Rock, Hubly and Miraj to the accident site, the spokesperson said.