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Insurance Article

Why a Rail Accident Cover Makes Sense?

February 06 2017
why a rail accident cover makes sense

A rail accident cover protects you from untoward incidents on your train trip

India has a vast railway network that covers a total distance of 67,312 km carrying more than 8 billion passengers annually. Considering the vastness of the railway network, train accidents per million km becomes a crucial factor while considering passenger safety. Train accidents per million km went down from 0.17 in 2009-10 to 0.10 in 2013-14. However, it increased to 0.11 in 2014-15, which is a worrying factor.

Besides the recent derailment of Indore-Patna Express near Kanpur raised concerns on the safety of passengers. The derailment caused at least 150 deaths and more than 150 injuries. It is considered the deadliest train accident since the Gaisal train disaster in 1999, which claimed 290 lives. Considering the increase in number of train accidents in recent times, it is a wise option to opt for a rail accident cover.

Ministry of Railways Launches Rail Accident Cover

Addressing the safety of passengers, the ministry of railways began with a pilot project last year, which provided an option of buying a ₹10 lakh insurance cover at a premium of 92 paise while booking tickets through Indian Railway Catering and Tourism Corporation (IRCTC) website. Considering the success of the project, the insurance cover is now mandatory for any passenger that books a ticket from the IRCTC’s website, irrespective of the class and confirmation status.

How to Avail the Cover

Initially, when the project was launched, the traveller had an option to choose whether he/she wants to avail the cover. However, the cover is now mandatory and is given free of cost by the Ministry of Railways from December 2016. All you need to do is book the tickets as usual and you are entitled for the insurance cover. After booking the ticket, you will receive a message from one of three partner insurance companies to fill the nomination details.

What Is Covered Under the Scheme?

The coverage under the policy in case of death and permanent total disability is ₹10 lakh, whereas for permanent partial disability it is ₹7.5 lakh. Hospitalisation expenses up to ₹2 lakh are covered and ₹ 10,000 will be given for transportation of mortal remains in an unfortunate event of death following a rail accident. You can also refer the Indian Railways or IRCTC’s website for compensation details.

Why the Cover Makes Sense?

The initiative is a great move to provide financial security to passengers travelling in suburban trains and is likely to change the face of train travel in the country. The insurance, which is now given free of cost and its high benefits up to ₹10 lakh makes it easily acceptable by masses and suitable for lower income families in case of an event of permanent disability or death.

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