Railways proposes Rs10 lakh insurance cover for a Rs20 premium per ticket

Indian Railways is likely to introduce optional insurance scheme for all reserved category passengers from next month under a reservation-linked insurance plan proposed by its subsidiary Indian Railway Catering and Tourism Corporation (IRCTC).

Reports quoting railway ministry sources say the railway ministry has cleared IRCTC's proposal for the new passenger-friendly scheme under which travellers with valid reserved tickets in all classes will pay a minimum of Rs20 as premium for an insurance cover of Rs10 lakh in case of death or permanent disability caused any train accident.

The one-time insurance coverage will be valid only from the actual departure to actual arrival of the train for passengers who opt for e-ticketing.

The scheme is optional and passengers will have the option to join the scheme at the time of booking tickets.

As per the proposal, around Rs10 lakh will be provided in case of death (also Rs10,000 per person for transportation of mortal remains) and permanent disability; Rs7.5 lakh for partial disability; Rs5 lakh for hospitalisation and expense for injury.

Railway minister Suresh Prabhu in his Rail Budget for the year had announced plans to launch passenger insurance scheme. Indian Railways serve nearly 13 million passengers daily, out of which nearly 12 million are unreserved passengers.