IRCTC to reduce rail travel insurance premium

New Delhi, Oct 6 (IANS) Indian Railways on Thursday said it will reduce the premium charged on its travel insurance scheme to one paisa from the current 92 paise.

According to the Indian Railway Catering and Tourism Corporation (IRCTC), the reduced premium cost will be effective from October 7 and will be valid for all tickets booked up till October 31.

“We have decided to implement the reduced price for the optional travel insurance scheme with immediate effect,” said A.K. Manocha, Chairman and Managing Director, IRCTC.

“It is a special promotional measure and the idea is to facilitate more and more rail travellers avail this scheme.”

Manocha added: “It is a Diwali bonanza for our patrons.”

The insurance facility, which was announced in the Railway Budget 2016-17, allows a travelling passenger to get an insurance cover of up to Rs 10 lakh on booking a train ticket on the IRCTC’s portal.

“The optional insurance scheme is a passenger-friendly measure, and the way it is being opted for by rail travellers is a proof of its growing popularity,” Manocha pointed out.

The scheme which was introduced on September 1 this year has found acceptance with one crore passengers till September 29.

The insurance scheme offers travellers or their families compensation of up to Rs 10 lakh in the event of death or permanent total disability, Rs 7.5 lakh for permanent partial disability, up to Rs 2 lakh for hospitalisation expenses and Rs 10,000 for transportation of mortal remains in the event of death or injury from a train accident.

The facility has been made available for all rail passengers who book the e-ticket, excluding sub-urban trains, irrespective of the class of the ticket. The premium amount for the scheme is automatically added to the ticket fare if the passenger opts for insurance.

The scheme is being implemented by IRCTC in partnership with ICICI Lombard, Royal Sundaram and Shriram General.