Over 4 million opt for Indian Railways’ 0.92 paise premium insurance scheme of Rs.10 Lakh. It seems that Suresh Prabhu-led Indian Railways’ scheme to offer insurance cover for rail yatris has become a big hit among passengers!
New Delhi: It seems that Suresh Prabhu-led Indian Railways’ scheme to offer insurance cover for rail yatris has become a big hit among passengers. Railway Minister Suresh Prabhu today tweeted, “No. of people opting for new insurance scheme crossed 4 million mark. Scheme a great success! One among many passenger friendly initiatives.” Prabhu had during his Railway Budget 2016 announced that Railways will provide the facility of optional travel insurance at the time of booking. The insurance cover being offered by Railways goes up to Rs 10 lakh and the premium is only 92 paise. Some reports even suggest that this may very well be the world’s cheapest rail travel scheme.
Railway Minister Suresh Prabhu today tweeted, “Railways may mull insurance for baggage, laptops and even mobiles too; currently we are examining the proposals. No.of people opting for new insurance scheme crossed 4 million mark. Scheme a great success!”
The passenger will be given the option of insurance cover at the time of booking the ticket on the IRCTC website. If the passenger decides to opt for it, then the premium amount will be added to the ticket cost. The insurance company will send an SMS or e-mail to confirm the policy number along with a link to update nomination details.
The coverage includes death or total disability insurance cover of Rs 10 lakh; partial disability insurance of up to Rs 7.5 lakh; hospitalisation expenses of up to Rs 2 lakh. The facility is available to those who book e-tickets through the IRCTC platform. This does not include the sub urban trains. It insurance scheme is available only for confirmed and RAC tickets and covers all passengers except children below 5 years of age and foreign citizens. However, no refund of the premium will be given in case of cancellation of the ticket.
The scheme is being implemented on a pilot basis by IRCTC in partnership with ICICI Lombard General Insurance, Royal Sundaram General Insurance and Shriram General Insurance selected through a bidding process. Acording to Railways, the insurance company is required to process the claim and send the cheque within 15 days of the receipt of the document. The claims for compensation should be lodged within four months of the event/accident.
With 40 lakh people opting for passenger insurance since its launch early this month, Railways is now planning to roll out insurance for baggage, mobiles and laptops in the insurance cover.
There are also plans to expand the existing passenger insurance to include station and ticketing areas so that passengers get the cover in case of any untoward incident on station premises.
“As of now the insurance covers passenger from boarding to alighting from train. We are planning to extend it on station and ticketing areas also. There is potential to extend it to baggage and other valuables like mobile and laptop,” said IRCTC Chairman and Managing Director A K Manocha.
According to IRCTC (Indian Railway Catering and Tourism Corporation), there is immense potential to expand the insurance cover and this would bring down the premium amount. IRCTC along with three private companies provide the insurance cover.
Manocha said the response to passenger insurance was massive and plans of extending the insurance cover had to be worked out. The organisation is also planning to extend the service to unreserved passengers. It is also modifiying the ticket-booking website so that medical insurance automatically gets added to the ticket. The passenger has to opt out if the person is not interested in getting the cover. Presently, the insurance option has to be ticked while booking the ticket.
Since September 1, passengers booking tickets online have an option to get an insurance cover of up to Rs.10 lakh by paying a premium of 92 paise. Insurance can be claimed if any untoward incidents, including terrorist attack, dacoity, rioting, shootout or arson, occurs. The scheme is a great success and on Tuesday, Railway Minister Suresh Prabhu tweeted, “Number of people opting for new insurance scheme crossed 4 million mark. Scheme a great success and it is one among many passenger friendly initiatives.”
The scheme offers travellers/nominees/legal heirs a compensation of Rs.10 lakh in the event of death or total disabilty, Rs.7.5 lakh for partial disability, up to Rs.2 lakh for hospital expenses and Rs.10,000 for transporting mortal remains from the place of a train accident.
Three companies — ICICI Lombard General Insurance, Royal Sundaram General Insurance and Shriram General Insurance provide the insurance. They have been engaged for one year with the provision of extending the contract on the basis of performance basis.