Insurance scheme for Railway passengers

Railway Officials

The Optional Travel Insurance Scheme was introduced w.e.f 01.09.2016.

The Insurance premium collected under the scheme since implementation, upto Feb, 2020 is as   follows:-

Year Period Premium Amount Collected from Passengers
(Rs.in Crores)
2016-17 (01.09.2016 – 09.12.2016) 2.56
(10.12.2016 -31.03.2017) 8.46
(Free to passengers during this period, premium paid by IRCTC)
2017-18 (01.04.2017 – 31.08.2018) 38.54
(Free to passengers during this period, premium paid by IRCTC)
2018-19 01.09.2018 – 31.03.2019 8.53
2019-20 01.04.2019-29.02.2020 12.71

Since the premium is directly collected by the Insurance Companies, zone-wise data is not available.

The Sum assured under the Scheme is as follows:-

(i) In case of Death- Rs.10 lakh,

(ii) Permanent Total Disability – Rs.10 Lakh,

(iii) Permanent Partial Disability up to-  Rs.7.5 Lakh,

(iv) Hospitalization Expenses for Injury – Rs.2 Lakh,

(v) Transportation of mortal remains –  Rs.10 Thousand.

The details of compensation (insurance claim) paid by insurance companies to the victims or family members since introduction of the scheme are as follows:-

Year Claims paid by Insurance Companies
(Rs. in Crores)
2016-17 0.76
2017-18 3.59
2018-19 6.12
2019-20 3.53

Note:- 1. The insurance claims paid in a year may not be related to the accidents/causalities in that year alone. The amount depends upon the number of cases which are finalized and payment made in a particular year irrespective of the year(s) in which the accidents/causalities took place.

2. Since, the Insurance claims are directly settled by the companies, Railways have no zone-wise data.

3. The insurance claims paid by insurance companies during 2019-20 are due to Untoward incidents as defined in Section 123 (C) read with Section 124A of the Railways Act, 1989.

As directed by Ministry of Finance to promote digital/cashless transaction, the insurance cover was made free from 10.12.2016 to 31.08.2018 to all passengers buying Confirmed/RAC online/ e-tickets from IRCTC website.

Since Ministry of Finance refused to reimburse the premium to IRCTC beyond 31.08.2018, Ministry of Railways decided to again charge premium from the passengers opting for insurance from 01.09.2018.

This press release is based on information given by the Minister of Railways and Commerce & Industry, Shri Piyush Goyal in a written reply to a question in Rajya Sabha today.

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