Is it permissible in Islamic law to receive compensation for accidental death resulting from car or train accidents?

The compensation due from the party at fault is considered, in effect, analogous to the diyyah (monetary compensation paid to the family of a victim who has been killed or severely injured) ordained by Allah Almighty for the heirs of the victim, as a means of preserving the inviolability of life, emphasizing its worth, and honoring the children of Adam. The diyyah is an established right of the family of the individual killed—they may choose to accept it in its entirety, accept part of it, or waive it altogether. All of these courses of action are permissible. If they choose to accept it, that is good, and if they choose to waive it, that is even better. Allah Almighty says, “And to forego it is nearer to righteousness. And do not forget graciousness between you” (Quran, 2: 237) and “… Compensation payment presented to the deceased's family [is required] unless they give [up their right as] charity” (Quran, 4: 92).

And Allah Almighty knows best.