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Indian Railways Introduces Automatic Insurance Coverage for Passengers: Highlights of the New Facility

In response to the rail accident in Balasore, Odisha, last month where 70% of the passengers lost their lives and did not opt for the insurance offered by the railways, Indian Railways has introduced a new facility. Now, passengers will automatically receive insurance coverage upon ticket booking. The cost for this insurance is very low, just 35 paise.

Indian Railways has made the insurance facility offered by IRCTC during ticket booking a default option. This means passengers no longer have to choose this option separately; it will be automatically selected during ticket booking. This insurance covers up to 1 million rupees in case of a train accident, and the premium cost is only 35 paise. Previously, this personal accident insurance cover was optional and dependent on the choice of passengers.

Passengers can still opt-out of this insurance if they wish by clicking on the opt-out option during booking. However, considering the low cost of the insurance and the benefits it offers, it is advisable not to skip this option. The insurance covers compensation in case of death or disability due to a train accident, as well as medical expenses for injuries.

The move comes after the railway authorities observed that a significant number of passengers were not choosing this insurance facility, even after the Balasore accident. To prioritize the welfare of passengers, Indian Railways decided to make this facility automatic during ticket booking.

It is worth noting that 624 passengers affected by the Balasore accident had availed the insurance coverage. However, no claims were made for deaths, but some claims were made for injuries and medical expenses.

The insurance coverage is provided by SBI General Insurance Company Limited and Liberty General Insurance Company Limited, and it offers a crucial safety net to passengers in case of unforeseen accidents during train travel.

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