In a major development, the Indian Railway Catering and Tourism Corporation Ltd (IRCTC) has introduced a new approach to its personal accident insurance scheme for train passengers. According to a senior insurance industry official, passengers booking train tickets through the IRCTC portal will now automatically receive up to Rs 10 lakh insurance coverage.
Previously, passengers had to opt-in for the insurance cover, but the new scheme now mandates automatic inclusion of the Rs 10 lakh personal accident insurance cover. However, passengers who do not wish to avail themselves of this insurance can easily opt out by clicking a designated button during the booking process.
What makes this update particularly noteworthy is the remarkably low premium charged for the substantial Rs 10 lakh coverage – a mere Re. 0.35 paise.
The comprehensive policy covers death, disabilities, and medical expenses resulting from train accidents during travel. Two renowned non-life insurers provide this insurance coverage, SBI General Insurance Company Ltd and Liberty General Insurance Company Ltd.
The industry official hinted that the change in the scheme’s design might have been influenced by the recent tragic train accident in Odisha, which claimed the lives of 288 passengers and left over 1,000 others injured.
According to the Insurance Regulatory and Development Authority of India (IRDAI), 624 passengers were already covered under the IRCTC travel accident insurance scheme at the time of the correspondent’s report. Following the Odisha train accident, a total of 22 claims, amounting to Rs 60.52 lakh, were reported to the two insurers for disabilities and hospitalization expenses. Notably, no death claims had been lodged.