IRCTC is offering the insurance at a premium of 1 paise for tickets booked up till October 31, 2016.

Suresh Prabhu-led Indian Railways has come up with a Diwali bonanza for passengers! Indian Railways’ IRCTC is offering travel insurance up to Rs 10 lakh for a premium of just 1 paisa! For the uninitiated IRCTC had started offering rail travel insurance for those who book tickets using its platforms. The insurance scheme, which started in September this year, came at a cost of 92 paise. But now, as a festive season discount, IRCTC is offering the insurance at a premium of 1 paise for tickets booked up till October 31, 2016. The offer will be effective from tomorrow, October 7.

Over 1 crore railway passengers have already opted for the insurance scheme till date. IRCTC Chairman and Managing Director Dr. A K Manocha said, “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.”

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The facility, which was announced by Railway Minister Suresh Prabhu 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 incidents’, including terrorist attacks, dacoity, rioting, shoot-out or arson, as well as for short termination, diverted route and Vikalp trains.

The passenger is 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 is added to the ticket cost. The insurance company then sends an SMS or e-mail to confirm the policy number along with a link to update nomination details. The 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. In case of passenger opting for insurance, the claim/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, says IRCTC.