Indian Railways to Launch Voluntary Passenger Insurance Scheme
Indian Railways is likely to start a 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 a 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 a passenger insurance scheme in the Rail Budget this year. As of now, the scheme will be launched on a pilot basis for passengers booking online tickets, and it may be extended to passengers buying tickets from counters and monthly season ticket travelers in the days to come.
Coverage Details of the Insurance Scheme
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 and Rs 10,000 for transportation of mortal remains. A passenger has to opt for insurance while booking an e-ticket. The premium can be based on the duration of the journey or distance.
The technicalities of insurance coverage will be worked out after finalizing the companies.
Indian Railways is likely to start a 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 a 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 a passenger insurance scheme in the Rail Budget this year. As of now, the scheme will be launched on a pilot basis for passengers booking online tickets, and it may be extended to passengers buying tickets from counters and monthly season ticket travelers in the days to come.
Coverage Details of the Insurance Scheme
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 and Rs 10,000 for transportation of mortal remains. A passenger has to opt for insurance while booking an e-ticket. The premium can be based on the duration of the journey or distance.
The technicalities of insurance coverage will be worked out after finalizing the companies.