Pay Re. 1, Get yourself insured for train travel!

The Indian Railway Catering and Tourism Corporation (IRCTC) is set to launch the facility of travel insurance for passengers who book tickets on its website. The service, scheduled to come into effect from September, can be availed at a premium of Re 1.

According to the statement issued by the IRCTC, the scheme offers passengers or their families compensation of up to Rs 10 lakh in the event of death or permanent total disability, Rs 7.5 lakh for permanent partial disability, up to Rs 2 lakh for hospitalisation expenses.The scheme also include compensation of Rs 10,000 for transportation of mortal remains in the event of death or injury from a train accident or other untoward incident, including terrorist attacks, dacoity, rioting, shoot-out or arson, as well as for short termination, diverted route and Vikalp trains.

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Train accident and untoward incident cases will be handled according to definition under Sections 123, 124 and 124A of the Railways Act, 1989. The insurance cover is uniform for all classes and the option will be available through a check-box at the time of booking the ticket online. The premium amount will be automatically added to the ticket fare if the passenger opts for the insurance.

After making the payment, passengers will have to fill the nomination details, which is necessary to settle the claims on timely basis.Checking the option will make the coverage mandatory for all passengers booked under that PNR number and the premium charged accordingly. The passenger will have to provide his/her email ID for receipt of e-copy of the insurance policy.

The coverage will be valid from the actual departure of train from the originating station to actual arrival of train at the destination.

The scheme is being implemented by the IRCTC in partnership with ICICI Lombard General Insurance, Royal Sundaram and Shriram General.The three companies selected will get the insurance policy on a rotation basis from an automated system. IRCTC has engaged the providers for a period of one year, with the provision of extending the contract on a performance basis.

The announcement of optional travel insurance to train passengers prior to their travel comes as a welcome move for all the travellers who are susceptible to train accidents.This is the first time that such an option will be made available to train travellers at the time of booking tickets.This is a good initiative as it can increase insurance penetration and give financial protection to passengers against unfortunate circumstances while travelling.

Source: BusinessStandard