The Optional Travel Insurance Scheme for Indian Railway Passengers

Introduction:

The Optional Travel Insurance Scheme was introduced by the Indian Railway Catering and Tourism Corporation (IRCTC) on September 1, 2016. This scheme provides insurance coverage to passengers who book e-tickets through the official IRCTC website. Initially, passengers had to pay a premium of Rs. 0.92 per passenger, but later, to promote digital transactions, the insurance became free of cost for confirmed and RAC (Reservation Against Cancellation) passengers purchasing tickets online. The insurance covers incidents such as train accidents and untoward events as defined by the Railways Act, 1989, from the departure to the arrival of the train.

Insurance Coverage and Benefits:

Under the Optional Travel Insurance Scheme, the sum assured is paid to the victim, their family, or legal heir in the event of death or injury. The insurance coverage includes various benefits:

1. Death: In the unfortunate event of a passenger’s death due to a train accident or untoward incident, a sum of Rs. 10 lakh is provided to the victim’s family or legal heir.

2. Permanent Total Disability: If a passenger sustains permanent total disability as a result of a train accident or untoward incident, they are eligible for a sum assured of Rs. 10 lakh.

3. Permanent Partial Disability: Passengers who suffer permanent partial disability due to a train accident or untoward incident can receive compensation of up to Rs. 7.5 lakh, depending on the extent of the disability.

4. Hospitalisation Expenses for Injury: The insurance scheme covers hospitalization expenses for injuries sustained during the journey, providing coverage up to Rs. 2 lakh.

5. Transportation of Mortal Remains: In case of a passenger’s death, the scheme covers the transportation expenses for the mortal remains, offering an amount of Rs. 10,000.

Insurance Providers and Agreement:

IRCTC, a wholly-owned undertaking of the Ministry of Railways, has partnered with three insurance companies through a limited tender process. The insurance companies involved in the scheme are as follows:

1. Shriram General Insurance Company Ltd.
2. ICICI Lombard General Insurance Company Ltd.
3. Royal Sundaram General Insurance Co. Ltd.

The agreement between IRCTC and these insurance companies ensures the smooth implementation of the Optional Travel Insurance Scheme.

Compensation Liability and Legal Framework:

The compensation liability for death or injury of railway passengers in train accidents or untoward incidents is governed by the Railways Act, 1989. Section 124 and 124A, read with Section 123 of the Act, outline the compensation amounts. In case of death, the compensation amount is fixed at Rs. 8 lakh, while for injuries, it ranges from Rs. 64,000 to Rs. 8 lakh, depending on the severity of the injury.

Eligibility and Exclusions:

The Optional Travel Insurance Scheme is available to passengers traveling in reserved classes, including SL (Sleeper Class), 1AC (First Class AC), 2AC (Second Class AC), and 3AC (Third Class AC) of all trains, excluding passenger and suburban trains. However, this insurance scheme is exclusively applicable to tickets booked online through the IRCTC website. Passengers who book tickets manually at railway reservation counters or travel with unreserved tickets are not entitled to avail of this insurance scheme.

Conclusion:

The introduction of the Optional Travel Insurance Scheme by the IRCTC has provided an additional layer of security and peace of mind to Indian railway passengers. This scheme, initially introduced with a nominal premium, was later made free of cost to promote cashless transactions. The coverage and benefits offered by the scheme, including compensation for death, disability, hospitalization expenses,