Initially it will be done on trial basis. The policy will be applicable only for the passengers holding tickets such as confirmed, RAC and wait-listed ones.
The scheme offers travellers/nominees/legal heirs a compensation of Rs 10 lakh in the event of death or total disability, Rs 7.5 lakh for partial disability, up to Rs 2 lakh for hospitalisation expenses and Rs 10,000 for transportation of mortal remains from the place of a train accident or where an untoward incident, including terrorist attack, dacoity, rioting, shootout or arson, occurs. However, no refund of the premium will be given in case of cancellation of the ticket.
IRCTC is collaborating with ICICI Lombard General Insurance, Royal Sundaram General Insurance and Shriram General Insurance. A total of 19 companies had participated in the bidding process out of which three insurance companies were selected. IRCTC has engaged the firms for one year with the provision of extending the contract on a performance basis.
Railway minister Suresh Prabhu had in his Budget speech announced that the Railways will provide optional travel insurance for journey at the time of booking.
