A decision to this effect was taken at a meeting of the state Cabinet presided over by Chief Minister Nitish Kumar.
The compensation amount has been increased from Rupees one lakh to Rupees five lakh now, Principal Secretary, Cabinet Coordination Committee Brajesh Mehrotra told reporters.
The same amount of compensation would also be available in deaths due to caste clash and election related violence, he said.
The Bihar Cabinet approved a sum of rupees five crore for paying compensation to victims of natural calamity in the current financial year.