Railways to offer Rs10 lakh insurance cover on 92 paise premium from month-end

Beginning 31 August, Indian Railways will offer passengers an optional travel insurance cover of up to Rs10 lakh while booking a train ticket online by paying less than a rupee.

The facility will be available on the IRCTC website and a person booking a train ticket through the website will be able opt for travel insurance cover for a premium of 92 paise, from 31 August, reports quoting railway ministry sources said on Thursday.

Railway minister Suresh Prabhu had, in the Railway Budget for 2016-17, proposed an optional travel insurance scheme for train journey at the time of booking.

The new facility, which is being operationalised on a trial basis, will be available to all passengers, excluding those travelling on suburban trains, while booking online irrespective of the class.

The insurance cover is for citizens holding a confirmed (including confirmed, RAC and wait-listed) tickets and hence will not be applicable for children up to 5 years of age. It will not also be available to foreign citizens, the reports stated.

Under the insurance scheme, travellers/nominees/legal heirs will be eligible for a compensation of Rs10 lakh in the event of death or total disability, Rs7.5 lakh for partial disability, up to Rs2 lakh for hospitalisation expenses, as the case may be.

The premium also covers an extra Rs10,000 as expenses for transportation of mortal remains from the place of a train accident or any other untoward incident, including terrorist attack, dacoity, rioting, shootout or arson, occurs.

The 92 paise premium is, however, is non-refundable in case of cancellation of the ticket.

IRCTC is implementing the scheme in partnership with ICICI Lombard General Insurance, Royal Sundaram General Insurance and Shriram General Insurance. These insurers were selected through a bidding process in which a total of 19 companies had participated.

The three selected insurance companies are on a one-year contract and will issue insurance policy on a rotational basis through an automated system.

There is a provision for extending the contract on a performance basis.