When introduced, this is going to be a big deal for every train traveller. Starting September 1, railway passengers will be offered optional travel insurance by IRCTC.

The facility, which will be initially introduced on a trial basis, will allow passengers to opt for a travel insurance for a premium of just Re 1 while booking an e-ticket from the IRCTC website.

Although the insurance cover is available for all e-tickets, irrespective of the class, the scheme won't be available for sub-urban trains.

Offered by IRCTC in partnership with with ICICI Lombard General Insurance, Royal Sundaram and Shriram General, the scheme will offer travellers and their families a 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.

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The scheme offers travelers 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 hospitalization 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. Train accident and untoward incident cases will be as per definition under Sections 123 read with Sections 124 and 124A of the Railways Act, 1989.

The claims intimation should be immediate but not later than four months after the event. The insurance company will process the claim and send the cheque within 15 days of the receipt of document.

In case of cancellation of tickets, IRCTC will make an automatic refund of the premium amount after deduction of administrative charges to the passenger on the same account that was used to book the ticket.

