Suresh Prabhu

Over 4 million opt for Indian Railways Rs 10 lakh insurance for 0.92 paise premium

Railway Minister Suresh Prabhu today tweeted,

“No. of people opting for new insurance scheme crossed 4 million mark. Scheme a great success! One among many passenger friendly initiatives.”

During his Railway Budget 2016, Prabhu announced that Railways will provide the facility of optional travel insurance at the time of booking. The insurance cover being offered by Railways goes up to Rs 10 lakh and the premium is only 92 paise. Some reports even suggest that this may very well be the world’s cheapest rail travel scheme.

At the time of booking the ticket on the IRCTC website, passenger will be given the option of insurance cover. If the passenger decides to opt for it, then the premium amount will be added to the ticket cost. The insurance company will send an SMS or e-mail to confirm the policy number along with a link to update nomination details.

The coverage includes :

  • Death or total disability insurance cover of Rs 10 lakh;
  • Partial disability insurance of up to Rs 7.5 lakh;
  • Hospitalisation expenses of up to Rs 2 lakh.

The facility is available to those who book e-tickets through the IRCTC platform. This does not include the sub urban trains. It insurance scheme is available only for confirmed and RAC tickets and covers all passengers except children below 5 years of age and foreign citizens. However, no refund of the premium will be given in case of cancellation of the ticket.

The scheme is being implemented on a pilot basis by IRCTC in partnership with ICICI Lombard General Insurance, Royal Sundaram General Insurance and Shriram General Insurance selected through a bidding process.

Acording to Railways, the insurance company is required to process the claim and send the cheque within 15 days of the receipt of the document. The claims for compensation should be lodged within four months of the event/accident.

Source : Financial Express