Railway Schemes : Travel Insurance Details

Indian Railway has announced various passenger friendly schemes including Voluntary Passenger Insurance etc.. Following are the details about various schemes by Railway. 


Travel Insurance Claim Process for IRCTC Tejas Trains Passengers


Indian Railway on 05.02.2020 announced via press release that the optional Insurance scheme has been further extended from 01.09.2019 to 31.08.2020 and three Insurance companies namely M/s Bharti Axa General Insurance Co. Ltd, M/s Bajaj Allianz General Insurance Co. Ltd., and M/s Shriram General Insurance Co. Ltd., selected by IRCTC on tender basis, are providing the insurance facility to the passengers.

The Sum assured to be given to victim passenger/family or legal heir of the victim are as follows:-

  • In case of Death – Rs.10 lakh,
  • Permanent Total Disability – Rs.10 Lakh,
  • Permanent Partial Disability – up to Rs.7.5 Lakh,
  • Hospitalization Expenses for Injury – Rs.2 Lakh,
  • Transportation of mortal remains – Rs.10 Thousand.

Under the scheme, sum assured is paid to the victim/family or legal heir of the victim as the case may be, in case of death/injury of reserved passengers due to train accident/untoward incidents as defined under Section 123 read with Sections 124 and 124-A of the Railways Act, 1989; subject to the qualification that the coverage will be valid from the actual departure of train from the originating station to actual arrival of train at the destination station including ‘process of entraining’ and ‘process of detraining’ the train.

A total amount of Rs. 21.55 crores has been received by IRCTC on account of premium from Rail Passengers and paid to the Insurance companies between the period from 01.09.2016 to 31.12.2019.

A total amount of Rs. 12.49 crores has been paid by the Insurance companies to the passengers in lieu of accidents.

No amount has been received by the Railways as the premium is paid directly to the Insurance companies and there is no provision in the agreements to get any commission from the Insurance companies.


Details of Insurance Cover For Railway Passengers 

Updated 16.11.2016

Indian Railway announced an Optional Travel Insurance Scheme on a pilot basis. As per this for one year has been launched, w.e.f 01/09/2016 for the railway passengers who book e-ticket through official website of Indian Railway Catering and Tourism Corporation (IRCTC). Under the scheme reserved passengers who expire or are disabled permanently or partially due to train accident and untoward incidents during train journey will be entitled to sum assured as per the details given below, Indian Railway announced through a press release on 16.11.2016. The objective behind the scheme is to maximize compensation to the passengers for the loss caused to them by train accident and untoward incidents.

IRCTC which is a wholly owned undertaking of Ministry of Railways has entered into an agreement with three Insurance Companies through Limited Tender, namely

  • Shriram General Insurance Company Ltd.,
  • ICICI Lombard General Insurance Company Ltd.
  • Royal Sundaram General Insurance Co. Ltd.

The amount of compensation to be given to passengers are as follows

  • In case of Death –  10 lakh
  • Permanent Total Disability –  10 Lakh
  • Permanent Partial Disability –  7.5 Lakh
  • Hospitalization Expenses for Injury –  2 Lakh
  • Transportation of mortal remains –  10 Thousand.

The insurance cover will cover all reserved classes (SL, 1 AC, 2 AC, 3 AC) and trains except passenger trains and Sub-Urban trains for tickets booked online on the IRCTC website. Personal belongings are not covered under the said scheme.


Updated 22.07.2016

As per the Railway Budget promise, Indian railway is likely to start voluntary passenger insurance scheme from September by charging a minimal premium of less than Rs 10 per ticket from travellers for an insurance cover of Rs 10 lakh in case of death or permanent disability caused in train accident.

IRCTC, a public sector undertaking, has shortlisted 17 insurance companies and of these three will be selected by Friday to provide insurance cover to passengers in case of any untoward incident.  Railway Minister Suresh Prabhu has announced plans to launch passenger insurance scheme in Rail Budget this year.

As of now, the scheme will be launched on pilot basis for passengers booking online ticket and it may be extended to passenger buying tickets from counters and monthly season ticket travellers in days to come.  

Under the scheme, a passenger will get an insurance cover of Rs 10 lakh in case of permanent disability or death, Rs 7.5 lakh for partial disability or injuries and Rs 5 lakh for hospitalization an Rs 10,000 for transportation of mortal remains.  

“A passenger has to opt for insurance while booking e-ticket. The premium can be based on duration of journey or distance. The
technicalities of insurance coverage will be worked out after finalizing the


There are also plans to provide flexibility to passengers like by increasing the insured amount.

“As of now Railway Board has capped the amount at Rs 10 lakh but based on the initial review it can be extended upto Rs 50 lakh if passenger wants. There are also plan to cover baggage insurance along with passenger insurance but everything will depend on the response of the pilot to be
launched in September,”

the official added.

Railway Minister Suresh Prabhu has announced plans to introduce passenger insurance scheme in Rail Budget this year, a famous News paper reported.

For getting more details about Terms and Condition of Travel Insurance by Indian Railway please visit the official page : – Terms and Conditions Optional Travel Insurance Scheme


Please enter your comment!
Please enter your name here