SC Order On Train Insurance: Who Will Be Covered & How Much Compensation Is Offered, Pg17

Key Highlights:

• The Supreme Court directed Indian Railways to extend optional travel insurance to passengers booking tickets at station counters.
• The order was issued on October 6 and is to be implemented by October 27.
• This move aims to cover disadvantaged sections and those in remote areas who primarily use offline booking methods.
• Currently, over 12% of reserved tickets, purchased offline, do not offer the optional 45-paise insurance cover available for online bookings.

Detailed Insights:

• The existing optional travel insurance scheme, costing 45 paise, is currently available only for e-ticket passengers.
• This scheme covers death, permanent total disability, partial disability, hospitalization expenses for injury, and transportation of mortal remains.
• Compensation under the scheme ranges from Rs 2 lakh to Rs 10 lakh, depending on the severity of the incident.
• Only Indian citizens are eligible for this optional insurance, and it applies to confirmed, partly confirmed, and RAC tickets.
• Passengers with waiting list tickets, general class passengers, and those traveling on passenger or suburban trains are not covered by the current optional scheme.
• The Railways Act, 1989, mandates that railways pay compensation to bonafide passengers for death or injury due to accidents or untoward incidents.
• The Supreme Court recognized that counter ticket users often belong to the lowest strata of society and remote areas, necessitating this intervention.

Key Concepts Involved:

• Railways Act, 1989: Legislation defining the liabilities of Indian Railways regarding passenger safety and compensation for accidents.
• IRCTC: Indian Railway Catering and Tourism Corporation, a subsidiary of Indian Railways that handles online ticketing and facilitates optional travel insurance.
• Optional Travel Insurance: An additional, voluntary insurance cover available to passengers for a nominal premium, providing financial protection against accidents during travel.