Though railway mishaps are not regular in India, there are still a number of reports every year where an accident, robbery or a terrorist attack may have to happen. To give some sense of security to the passengers, the Indian Railway has come up with a very affordable insurance policy. The ministry invited tenders from different Insurance companies and have selected three of them to proceed with the setup.
Shriram General Insurance, ICICI Lombard General Insurance and Royal Sundaram General Insurance will now work with Indian Railway to provide insurance to all the passengers. As of now, the insurance is only available for the passengers who book a ticket from online portal of IRCTC but on later stages it will be extended to all travelers.
In a statement, Railway said that there will be no discrimination on the basis of class, destination, distance or any other aspect. The insurance price will remain the same i.e. Rs.0.92 per person per ticket.
The passenger can get a maximum compensation of Rs.10 lakh in case of any mishap. During the bidding, Shriram General Insurance opted for the lowest bid that was Rs.0.92. The other two companies will have to match Shriram General Insurance’s price.
In the case of death, the maximum coverage of Rs.10 lakh will be provided to the family. 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 of the deceased. 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.
Also Read: 9 Types of Concessions offered by Railways : All you need to know !!
Though there is no data available to compare such insurance policies with the rest of the world but this is definitely the cheapest one. The new insurance scheme by railway is in the line with the insurance schemes run by the central government that is Pradhan Mantri Jeevan Jyoti Bima Yojana and Suraksha Bima Yojana in which the person has to pay a premium as low as Rs.12.
The latest Kanpur train accident is a fine example of how this insurance policy can help the passengers. Out of 695 passengers, 128 had opted for the insurance and out of these, 78 were on the train at the time of the accident. All of them will receive compensation in case it is applicable as per the injuries or death.
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