A Landmark Directive for Passenger Equality
This significant change comes as a result of a directive from the Supreme Court of India. During proceedings related to overall railway safety following the tragic Odisha train accident in June 2023, the court addressed the disparity in insurance access
between passengers. It noted that while those booking tickets online via the IRCTC website or app could opt for travel insurance, this facility was unavailable to millions who purchase tickets from physical reservation counters. To rectify this, the court mandated that from October 27, 2026, all passengers, regardless of their booking method, should have access to the same insurance protection, making the Railway Board directly responsible for its implementation.
What the Railway Insurance Scheme Covers
The travel insurance scheme provides a crucial financial safety net for passengers in the event of a train accident or other 'untoward incidents' as defined by the Railways Act. Based on the existing policy for online tickets, the coverage is substantial. It provides Rs. 10 lakh in the unfortunate case of death or permanent total disability. For permanent partial disability, the coverage is up to Rs. 7.5 lakh. The policy also includes provisions for medical treatment, offering up to Rs. 2 lakh for hospitalization expenses due to injury. Additionally, it provides Rs. 10,000 for the transportation of mortal remains. This coverage applies uniformly across all travel classes.
How Will it Work for Counter Tickets?
The exact mechanism for implementing the scheme for counter tickets is being finalized by the Railway Board. However, it is expected to mirror the process for online bookings as closely as possible. The existing scheme for online tickets is optional, with a nominal premium of just 45 paise per passenger. It is likely that a similar small fee will apply to counter bookings. Passengers purchasing tickets online currently receive their policy information via SMS and email, along with a link to fill in nominee details. It is crucial for passengers who opt-in to complete this step, as failing to do so means any potential claim settlement would be made with legal heirs, which can be a more complex process. A similar system, possibly utilizing a mobile number provided at the counter, is anticipated for offline ticket holders.
Eligibility and Key Conditions
The scheme is available to all passengers with a confirmed or RAC (Reservation Against Cancellation) ticket. It is important to note that the policy is currently applicable only to Indian citizens; foreign nationals are not eligible. The insurance coverage begins from the actual departure of the train and lasts until the train's arrival at the destination, including the process of boarding and de-boarding. The policy covers incidents like collisions and derailments but would not typically cover self-inflicted injuries. While most passengers are covered, children under the age of five travelling without a booked berth or seat are not eligible for this insurance scheme.
