Railways reduces travel insurance to just one paisa from 92 paise

New Delhi: In a "Diwali bonanza" ahead of the festival, rail passengers can now avail travel insurance scheme at just one paisa from Friday.

The optional travel insurance scheme for train passengers will be available at a token price of just one paisa instead of 92 paisa from October 7.

Enthused by the burgeoning number of rail travellers opting for the scheme since its launch on September 1, IRCTC said today that it has reduced the premium amount to one paisa from the 92 paise, albeit for a temporary period.

The reduced premium cost will be valid for all tickets booked up till October 31, 2016 under the scheme offered by the Indian Railway Catering and Tourism Corporation (IRCTC).

"We have decided to implement the reduced price for the optional travel insurance scheme with immediate effect. It is a special promotional measure and the idea is to facilitate more and more rail travellers avail this scheme," IRCTC Chairman and Managing Director A K Manocha said, adding "It is a Diwali bonanza for our patrons."

Manocha informed that 1,20,87,625 train passengers had opted for the scheme till 8 AM today. The scheme which was introduced on September 1 this year had found acceptance with one crore passengers till September 29.

"The optional insurance scheme is a passenger-friendly measure, and the way it is being opted for by rail travellers is a proof of its growing popularity," Manocha pointed out.

The facility, which was announced in the Railway Budget 2016-17, allows a travelling passenger to get an insurance cover of up to Rs 10 lakh on booking a train ticket on the IRCTC's portal.

It offers travellers 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 and 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.

The facility is available for all rail passengers who book the e-ticket, excluding sub-urban trains, irrespective of the class of the ticket. The insurance cover is uniform for all classes and the option available through a checkbox at the time of e-ticket booking. The premium amount is automatically added to the ticket fare if the passenger opts for insurance. After the ticket booking and payment of premium, a message is displayed to complete the nomination details.

The scheme is being implemented by IRCTC in partnership with ICICI Lombard, Royal Sundaram and Shriram General.

In case of passenger opting for insurance, the claim and liability is between passenger and the insurance company. In the event of a death due to accident, 100 per cent of the sum insured will be paid by the company.