Indian Railway ensure to give an accidental Insurance cover of Upto 10 lakh
On an average, about 15,000 people are said to die in rail mishaps yearly.A travel insurance cover of up to Rs10 lakh can be availed by every train traveler while booking a train ticket online by paying less than one rupee from 31 August.
Complete Detail about Travel Insurance Cover –
Insurance Companies Selected –
Indian Railway has selected Three Insurance Companies for this policy.
- Shriram General Insurance – lowest bidder, quoting 92p.
- ICICI Lombard General Insurance – quoted 99p .
- Royal Sundaram General Insurance –Rs 1.15.
for ensuring its passengers.
The three were selected through competitive bidding, among 17 companies.
Of the three companies selected by railway, each would get insurance policies on a rotation basis from an automated system.
Start From 31 of August –
As per source this Policy will start on wards from 31 of August. And hence To begin next month, it would be among the cheapest in the world, at a premium of 92p a passenger for coverage up to Rs 10 lakh. This premium is way below the global market standards.
What are The Major Stepsof This Premium
- At first in starting days, insurance would be available for those who book tickets online.
- Later, the scheme could be extended to season ticket travelers, where for a premium of Rs 200-300, they will get annual coverage(coverage for a full year).
- Irrespective of class, destination and distance to be travelled by every traveler , the rate of premium and coverage would be uniform means no matter where you go , where you come from , your whole rate of premium will be same
- AK Manocha speak out -“Travelers who book tickets online through our website can opt for it giving a nominee’s name. Later, it might be extended to unreserved travelers and monthly season ticket holders,” said AK MANOCHA chairman and managing director of Indian Railway Catering and Tourism Corporation (IRCTC), an IR subsidiary that handles online ticketing, catering and rail tourism.
How Insurance Will Work Out –
- According to the rules and Guidelines – If in any case of death / permanent disability happened to the traveler, Rs 10 lakh will be provided.
- For permanent partial disability, the coverage extends to Rs 7.5 lakh.
- For hospital expenses, the coverage would be up to Rs 2 lakh.
- In addition, the insurance would provide Rs 10,000 for transportation of mortal remains.
- Apart from rail mishaps, the coverage would take care of terrorist attacks and accidental fall of a passenger from a train and normal accidents, riots, robbery and dacoity.
According to V Ramakrishna, – “There is no data available to suggest this is the cheapest in the world. However, it is sure that this premium is way below the global market standards. Though travel insurance compensation for flights are higher, ranging about Rs 75 lakh, the premium is also on the higher side, Rs 2,000-3,000,”
Since 1994, the railways had been paying an annual premium to insurers, through which those on a valid ticket in a passenger train, as also platform ticket holders, were insured.
According to media reports, this annual premium scheme discontinued in 2008-09, citing higher premiums as a reason. Since then, IR has been compensating for deaths and injuries from its revenue.
Statistics – According to the National Crime Records Bureau, in 2014, 28,360 rail accidents were reported, in which 3,882 were injured and 25,006 lost their lives.