Rail yatris to get Rs 10 lakh insurance for Re 1

RSTV Bureau
File photo of Union Railway Minister Suresh Prabhu. Photo: PTI

File photo of Union Railway Minister Suresh Prabhu.
Photo: PTI

Passengers travelling by Indian Railway will now get travel accident cover for a premium as low as Re 1 for an insurance cover of Rs 10 lakh.

The scheme will kick start from September and will be applicable for tickets booked through IRCTC website.

“At the moment, the insurance offer is under integration process and we expect it will be operationalised from September,” said IRCTC Chairman-cum-Managing Director AK Manocha

As per Railway officials the insurance will provide coverage against death, injury and disabilities caused due to accidents. The insurance cover is besides the compensation given by the Railways in case of accidents to valid ticket holders.

As per available information, compensation will be also provided by the insurance company in case of hospitalisation due to train accidents.

“We have selected three insurers – Shriram General, Royal Sundaram and ICICI Lombard – through the bidding process, they will provide the cover. A total of 19 insurance companies were short-listed for the contract,” said the IRCTC CMD.

File Photo-PTI

File Photo-PTI

IRCTC, which is the public-sector undertaking of the Railways, handles catering, tourism and Internet ticketing activities also partnered with the State Bank of India to enable digital payments through the SBI’s mobile wallet Buddy.

“We are planning to enter unreserved ticketing system; it would be available in a few months time,” said Manocha.

Manocha also said IRCTC is integrating android software which will make refund process of e-ticket cancellation simpler. IRCTC is planning to launch its own e-wallet in a renewed form, he added.

“The failure for card payment is only 2-3 per cent because of the pathway issues. We are hoping to launch e-wallet in the renewed form. It will be made free for the first three months. Currently it is linked to the pan card and it will also be linked to the Aadhaar card soon.”

Indian Railways has already started the process for e-wallet which is expected to be launched by Dussehera or Diwali in October this year.