Insurance Cover For Railway Passengers

IAS Prelims 2023

An Optional Travel Insurance Scheme on a pilot basis for one year has been launched w.e.f 01/09/2016 for the railway passengers who book e-ticket through official website of Indian Railway Catering & Tourism Corporation (IRCTC).

Under the scheme reserved passengers who expire or are disabled permanently or partially due to train accident and untoward incidents during train journey will be entitled to sum assured as per the details given below.

The objective behind the scheme is to maximize compensation to the passengers for the loss caused to them by train accident and untoward incidents.

IRCTC which is a wholly owned undertaking of Ministry of Railways has entered into an agreement with three Insurance Companies through Limited Tender, namely

(i) Shriram General Insurance Company Ltd.,

(ii) ICICI Lombard General Insurance Company Ltd.,

(iii) Royal Sundaram General Insurance Co. Ltd.

The amount of compensation to be given to passengers are as follows:

(i) In case of Death- ₹ 10 lakh

(ii) Permanent Total Disability – ₹ 10 Lakh

(iii) Permanent Partial Disability – ₹ 7.5 Lakh

(iv) Hospitalization Expenses for Injury – ₹ 2 Lakh &

(v) Transportation of mortal remains – ₹ 10 Thousand.

The insurance cover will cover all reserved classes (SL, 1AC, 2AC, 3AC) and trains except passenger trains & Sub-Urban trains for tickets booked online on the IRCTC website. Personal belongings are not covered under the said scheme.