Railway passengers to get Rs 10 lakh insurance for less than Rs 10 from September

NEW DELHI: Indian railway is likely to start voluntary passenger insurance scheme from September by charging a minimal premium of less than Rs 10 per ticket from travelers for an insurance cover of Rs 10 lakh in case of death or permanent disability caused in train accident.   IRCTC, a public sector undertaking, has shortlisted 17 insurance companies and of these three will be selected by Friday to provide insurance cover

to passengers in case of any untoward incident. Railway Minister Suresh Prabhu has announced plans to launch passenger insurance scheme in Rail Budget this year. As of now, the scheme will be launched on pilot basis for passengers booking online ticket and it may be extended to passenger buying tickets from counters and monthly season ticket travelers in days to come.

Under the scheme, a passenger will get an insurance cover of Rs 10 lakh in case of permanent disability or death, Rs 7.5 lakh for partial disability or injuries and Rs 5 lakh for hospitalization an Rs 10,000 for transportation of mortal remains. 

“A passenger has to opt for insurance while booking e-ticket. The premium can be based on duration of journey or distance. The technicalities of insurance coverage will be worked out after finalizing the companies,” said a senior railway officer.

There are also plans to provide flexibility to passengers like by increasing the insured amount.

“As of now Railway Board has capped the amount at Rs 10 lakh but based on the initial review it can be extended upto Rs 50 lakh if passenger wants. There are also plan to cover baggage insurance along with passenger insurance but everything will depend on the response of the pilot to be launched in September,” the official added.