Train Travel Insurance – How important it is to Cover your Train Journey?

As per a recent report, over 50 lakh train travelers have already availed of the rail travel insurance plan. This has been a massive responsive making the enterprise oriented to passenger’s wellbeing, a huge hit. The Indian railways had recently launched a special insurance facility which is a voluntary scheme that allows passengers to get coverage of up to INR 10 lakh. This plan will be offered when a passenger books a ticket online. One simply needs to pay 92 paise for availing of this facility!

Launched last month, it is estimated that around 50,03,834 travelers have already availed the facility. The passengers have responded to the scheme very well. This facility is available for all passengers with an exception of passengers travelling through out-of-town or (suburban) trains. Foreign citizens and children up to 5 years of age are not eligible for coverage. The passengers should hold tickets such as wait-listed ones, confirmed, and RAC.

Rising accidents and untoward incidents in the Indian Railways has become a major cause of concern these days. This has made train travel insurance a must have for all passengers.


IRCTC Insurance

The IRCTC official website gives an option to avail of train insurance while booking a ticket online. All you need to do is click on the ‘yes’ option and the website will charge you 92 paise additional per passenger. This amount will be added to the amount you pay for a ticket. One the amount is paid, you are insured.

The Policy Cover

The company will offered accidental coverage at the time of travel. When an accident occurs due to train collision, other type of accident, derailing, the nominee or passenger may claim compensation. Policy cover will be based on PNR.

Which Insurance Companies in India are offering this Plan?

At present, the following three companies are offering train travel insurance:

– Shriram General Insurance Company

– ICICI Lombard General Insurance Company Limited

– Royal Sundaram General Insurance Co. Limited

It is important to mention the name of nominee once you opt for the policy. You can do this via visiting the website of IRCTC again and moving to the ‘booking transactions’. Another way is to directly click on a link offered through SMS.

The Benefits

The insured can avail of the following benefits under the policy:

– In the event a passenger dies or suffers from a permanent total disability occurring within one year of the recorded accident date, the company will pay 100% sum insured.

– In case of permanent or partial disability, the maximum payment will be around 75 per cent of the total sum insured.

– The policy will also offer 20% of medical and hospitalization charges if treatment need arises.

– The policy also provides cover under incidents such as arson, dacoity, terrorist attack, shootout riots, etc.

To sum up, in case of death and permanent total disability, INR10 lakh will be paid as the sum assured. The insured can expect INR 7.5 lakh in case of permanent partial disability. Hospitalization will be compensated with an amount of INR 2 lakh. The company also offers the provision for payment of INR 10000 for transporting mortal remains. All accidents and mishaps related to train are demarcated under sections of the 1989 Railways Act listed below:

– Section 123
– Section 124
– Section 124A

The Right Time for Settlement Claim

In case, the nominees claim for train accident, they require making a claim to the insurance agency within four months from the recorded accident. The company will pay all claims through online payment (NEFT) process. Once all requisite documents are submitted, it will take around 15 days to get payment. The insurance agency will also demand KYC documents when making settlement, according to the AML rules.

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