Did you know the Indian Railways provides accidental insurance to its passengers? Here’s how you can avail it too.
The Indian Railways forms the lifeline of India’s transport system, ferrying large segments of the population from one part of the country to another. The growing number of railway accidents, however, has become a major cause of concern for individuals who depend on the railways for their daily commute and regular travel. In a bid to help its passengers, the Indian Railways had launched an Optional Travel Insurance Scheme w.e.f. 01.09.2016 for the confirmed/RAC railway passengers who book e-ticket through the official website of the Indian Railway Catering and Tourism Corporation (IRCTC) portal at a premium of Rs. 0.92 per passenger.
Although you can’t avoid financial losses from mishaps occurred while travelling, you can surely secure your losses by opting for a Travel Insurance policy.
How to avail insurance under IRCTC?
While booking your ticket on the IRCTC website, before making payments there is an option available to take rail insurance. By clicking on the yes option, an additional Rs. 0.92 per passenger will be levied on your ticketing amount thereby, guaranteeing you insurance for your trip. However, children below the age of 5 years and foreign citizens cannot enjoy benefits under IRCTC e-ticket insurance scheme.
IRCTC has partnered with banks like ICICI Lombard General Insurance, Royal Sundaram General Insurance and Shriram General Insurance to launch the scheme of Travel Insurance for its passengers.
Additional reading: Travelling Soon? Don’t Forget To Pack Travel Insurance!
What does the policy cover?
The accidental coverage extended to passengers will be applicable during travel time. In case of any accident occurring due to collision between trains, or derailing of train carrying passengers, or any other kind of accident, the passengers or the nominee can claim compensation in that case. The coverage of the policy will be as per PNR basis and will include death, permanent total disability, permanent partial disability and hospitalisation charges.
What benefits does the policy offer?
A passenger upon death or permanent disability will be entitled to 100% sum insured within 12 months of the date of accident. Upon partial disability, passenger will be entitled to get a maximum 75% of sum insured. In case the passenger enrols for some treatment, he/she will be entitled to 20% of hospitalisation and medical charges under the policy.
Let’s take a detailed look at what you get on buying Travel Insurance with your train ticket:
| Scenario | Insurance Cover |
| Death or permanent disability | Rs.10 lakhs |
| Permanent partial disability | Up to Rs. 7.5 lakhs |
| Hospitalisation expenses | Up to Rs. 2 lakhs |
| Transportation of mortal remains | Rs. 10,000 |
One will receive coverage of additional hospital expenses, apart from the coverage of disability and death. Moreover, those who opt to buy the Travel Insurance policy will not only receive the insurance cover but also the compensation that the government gives in case of an accident or untoward mishap. The Railway Accidents and Untoward Incidents (Compensation) Amendment Rules, 1997, states that the government gives a compensation of Rs. 4 lakh in case of death and up to Rs. 4 lakh in case of injuries and permanent disabilities.
Additional reading: Death Claim: Documents Required For A Life Insurance Claim
Filing A Claim
Filing a claim for a Travel Insurance under this scheme is quite hassle-free. Once you opt for Insurance, you have to update the details of a nominee on the insurance company’s website. You will then receive a link to the website along with the policy number via SMS. If one fails to update nominee details and something untoward happens, the claim will be settled with the legal heirs of the policy holder. One should file the claim within four months from the date of the accident. In case of a death claim, one has to submit a report from the railway authorities about the accident and the list of deceased passengers. The insurance company will process claims through the NEFT process. At the time of settlement, the insurance company may ask for the KYC documents of the insurer/nominee.
Additional reading: Travel Insurance Plans For Globetrotters
More about the Railway Travel Insurance Scheme:
Under this scheme, accidents and victims are defined according to Sections 123, 124 and 124-A of the Railways Act, 1989. Collision between trains (of which at least one is a passenger train), derailment of train or accident to any part of the train carrying passengers is referred to as an accident. However, Section 124A states that one cannot claim compensation if a passenger dies or gets injured due to suicide or attempted suicide. Additionally, self-inflicted injuries, injuries caused due to intoxication, insanity, ‘adventurous activities’, and natural death are not covered under this scheme. The cover, however, extends to acts of terrorism, robbery, dacoity, shootouts, and arson in passenger trains.
Just like it’s important that you avail Travel Insurance for your travel and keep your losses to the minimal, Life Insurance and Health Insurance policies are absolutely necessary too. A Life Insurance policy will protect your loved ones when terrible times befall on them. And with a robust Health Insurance cover, you can stay safeguarded against any debilitating disease or illness. Explore your options now.