The Indian government has approved a new compensation plan that would give the families of those that died because of COVID-19 more than $300 million.

India's Supreme Court approved the government plan that would pay the families of COVID-19 victims roughly $674 each. Based on the total number of fatalities as of Monday, which was around 448,997, the compensation plan would cost the government an estimated $302,623,978.

The compensation plan, which India claims to be the world's first, will become part of the government's Disaster Management Act 2005 will be distributed retroactively.

The Supreme Court said that compensation should also be paid to the families of those who don't have COVID-19 listed as the cause of death on their certificate. However, they have to prove that COVID-19 had led to the condition that caused death.

Families of victims who were undetermined COVID-19 cases - such as those that died in their homes - will also be eligible to receive compensation. They also have to present inconclusive proof that the death was COVID-19 related.

Justices M R Shah and A S Bopanna said that the next of kin of those that died because of COVID-19 will be given the amount of Rs 50,000 ($647) within 30 days of their application.

Families of COVID-19 victims can claim their compensations by filling out a form and submitted a copy of their family member's death certificate. The government will set up a grievance redressal committee that will go through the applications and examine the evidence presented for each case.

The Supreme Court decision comes after advocates called on the government to provide compensation for the families of the pandemic's victims. Lawmakers initially called on a compensation of about $5,392 per victim.

Lawmakers argued that the pandemic in the country should be considered a national disaster, which places it under the Disaster Management Act. This legally binds the federal government to provide support and compensation to victims.

India is one of the heaviest hit countries by the coronavirus pandemic just below the U.S., with more than 33.8 million positive cases and more than 449,000 deaths as of Tuesday. Researchers speculate that the actual death toll could be much higher as cases and deaths in some areas might not have been recorded.