Train passengers or their family will be eligible for compensation up to Rs.10 lakh in case of death or permanent total disability during the course of the train journey
Starting September, you will be able to purchase travel insurance for your train journey at the time of booking tickets, just as in flights.
TheIndian Railways Catering and Tourism Corp. (IRCTC), a subsidiary of the Indian Railways that handles online ticketing operations for the national transporter, will levy a premium of Rs.1 for the travel insurance.
Passengers or their family will be eligible for compensation up to Rs.10 lakh in case of death or permanent total disability and Rs.7.5 lakh for cases where permanent partial disability has happened during the course of the train journey. The insurance also covers hospitalization up to Rs.2 lakh and Rs.10,000 for transportation of mortal remains in event of death or injury from a train accident. Besides, in cases of terrorist attacks, dacoit, riots, shootouts or arson, short termination—when train journey is terminated before it reaches its destined station due to some issues or technical problem—of trains and diversion of routes, a passenger will be eligible for a cover of Rs.10,000.
The facility, which would be a first for train travelers in India, will be available on booking e-tickets through IRCTC website or mobile app. It will be available for all passengers on all trains except local or suburban trains. The validity will start from the actual departure of train from the originatingstation to the actual arrival of train at destination.
IRCTC chairman and managing director A.K. Manocha said in a press statement that the insurance cover is uniform for all classes and the option is available through a checkbox at the time of e-ticket booking. The premium amount will be automatically added to the ticket fare if the passenger opts for insurance.After the ticket booking and payment of premium, a message shall be displayed to complete the nomination details, which are necessary to settle the claims on timely basis. He adds that scheme would be on trial basis to start with.
For e-copy of insurance receipts, it would be mandatory for the passengers to provide their email IDs. A text message will be also sent to the registeredmobile phone from the insurance company, confirming the policy. IRCTC will make an automatic refund of the premium amount after deduction of administrativecharges to the passenger in case the ticket is cancelled.
To select insurance companies for the project, IRCTC undertook a bidding process where 19 companies participated, out of which 17 were shortlisted. The firms which finally made it are ICICI Lombard General Insurance, Royal Sundaram and Shriram General.
Manocha explained that the three companies—ICICI Lombard General Insurance, Royal Sundaram and Shriram General—will get the insurance policy on a rotation basis from an automated system, and they have been engaged the providers for a period of one year with the provision of extending the contract on a performance basis.
In case of an incident, the passenger or his family should make claims immediately, but not later than four months following which the insurance company will process the claim and send the cheque to the customer/legal heir within 15 days of the receipt of document. It is also required to discuss with the IRCTC nodal officer before rejecting any claim.
Date: July 27th 2016.