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IRCTC Offers Free Accident Insurance For Rail Travel

Few months back, the Railway Ministry introduced the concept of accident insurance, for the passengers travelling by Indian Railways.

It is a Group Personal Accident Cover, that aims to insure the passengers against any injury or death due to any rail accident... and other incidents.

You get the policy when you book your rail tickets on the IRCTC's website or mobile app. The insurance cover, provided by IRCTC, is through three general insurance companies viz. ICICI Lombard, Royal Sundaram and Shriram General Insurance.

It is an optional cover, entirely at the choice of the passenger. There is no compulsion to buy this policy.

Discussed below are the salient aspects of a typical IRCTC's Travel Insurance Policy.

1. Sum Assured
a. Hospitalization expenses for injury during the trip: Rs.2 lakhs

b. Accidental injury during the trip leading to Permanent Partial Disability: Rs.7.50 lakhs

c. Accidental injury during the trip leading to Permanent Total Disability: Rs.10 lakhs

d. Accidental injury during the trip leading to Death (if the insured person dies as a result of the accident within 12 months of its occurrence): Rs.10 lakhs

(Note: The person would be presumed to have died as a result of the accident, if he is not found within 7 years of the disappearance, sinking or wrecking of the train in which he was travelling).

e. Cost of transportation of mortal remains in the event of death during the trip: Rs.10,000

These amounts are the same, irrespective of the class in which you are travelling.

2. Incidents Covered
The incidents covered under the policy include
- Accident due to collision, derailment etc.
- Act of terrorism
- Robbery, dacoity or any violent attack
- Riot, shoot-out or arson
- Accidental fall from the train

3. Premium
Initially, the cost of buying the IRCTC Travel Insurance Policy was 92 paise per passenger (= Rs.0.80 + cess & service tax). Subsequently, however, Railway Ministry decided to bear the cost itself and hence this nominal charge was removed.

Accordingly, as on date the policy is available free of cost.

Relax! Now get FREE accident insurance cover from IRCTC for your rail journeys.

4. Term of the Policy
The insurance cover starts from the time of actual boarding of the train, till the train arrives at the destination station.

There is no waiting period in such policies.

5. Policy Issuance
Soon after the rail ticket is booked, brief details of the policy are sent via SMS to the mobile number registered on IRCTC. In addition, soft copy of the policy is forwarded to you at your registered email ID.

6. Nominee Details
The process of claim settlement is much simpler in case the policy has the nominee name vis-a-vis claim payment to the legal heir. 

Therefore, you must update the name of the nominee on the insurance company's website, as per the link given in the email forwarding you the policy copy.

7. Claim Amount Payable
In case of Death, Permanent Partial Disability, Permanent Total Disability and Transportation of mortal remains, the Sum Assured (or a percentage thereof) is the claim payable.

For hospitalization due to accident, only the actual expenses (e.g. hospital room rent, medicines, diagnostic tests, nursing charges, ICU charges, operation theatre charges) are payable, subject to a maximum of the Sum Insured i.e. Rs.2 lakhs.

The coverage for hospitalization expenses is over and above the death / permanent total disability / partial disability.

8. Claim Settlement
As with any insurance claim, you have to furnish the relevant documents. This has to be done within 4 months from the date of accident. Documentation includes among others, report of the railway authority confirming the accident of the train, a claim form, medical reports, death or disability certificate, ID proof, RTGS / NEFT details and a cancelled cheque.

The amount payable under the policy will be remitted to the insured or his nominee / legal heir, as the case may be, within 15 days of receipt of the last necessary document.

9. Exclusions in the Policy
Among the many exclusions, some of the key exclusions under the IRCTC policy are: 
- Claims where ticket was booked but train was not boarded
- Claims where ticket was booked, but the ticket was not confirmed
- Accident while crossing the railway tracks
- Claim due to the Insured Person committing any breach of law with criminal intent
- Accident under influence of intoxicating liquor or drugs
- Intentional self injury, suicide or attempted suicide
- Any natural cause or disease or medical or surgical treatment (unless such treatment was required due to injury caused by the rail accident)

10. Persons not eligible
Children up to the age of 5 years are not covered under this optional travel insurance from IRCTC.

Foreign citizens too are not covered under the policy. It is available only to the Indian Citizens who have booked their tickets through IRCTC's website / mobile app.

11. KYC Formalities
The insured or the nominee / legal heir may have to furnish their KYC (Know Your Customer) documents at the time of claim settlement.

Needless to mention: There is no reason whatsoever, why you should not opt for the accident insurance cover provided by IRCTC, for your travel by the Indian Railways.

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