Indian Market & Trends

Railways to begin offering insurance at 92 paise for Rs 10 lakh coverage

DELHI: The Indian Railways will now offer its passengers insurance beginning at just 92 paise a day starting this September. For now, it has selected three insurance companies – Shriram General, ICICI Lombard General and Royal Sundaram — for the purpose as per reports in the media. The service will be among the cheapest in the world.

A report in Business Standard said that the insurance would be available first for those who book tickets online. It will then be expanded to season ticket travellers. They would be able to get annual coverage for a premium of INR 200-300. “Irrespective of class, destination and distance to be travelled, the rate of premium and coverage would be uniform. Travellers who book tickets online through our website can opt for it giving a nominee’s name. Later, it might be extended to unreserved travellers and monthly season ticket holders,” said A K Manocha, CMD, Indian Railway Catering and Tourism Corporation (IRCTC), an IR subsidiary that handles online ticketing, catering and rail tourism.

Those insured will get coverage of Rs 10 lakh for death or permanent disability. Permanent partial disability will warrant a coverage of INR 7.5 lakh; for hospital expenses, the coverage would be up to INR 2 lakh. In addition, there will be INR 10,000 for transportation of mortal remains.

Apart from rail mishaps, the coverage would take care of terrorist attacks and accidental fall of a passenger from a train and normal accidents, riots, robbery and dacoity.

Of the three companies selected, each would get policies on a rotation basis from an automated system. Shriram General Insurance was the lowest bidder, quoting 92 paise. ICICI Lombard quoted 99 paise and Royal Sundaram INR 1.15. The other two will have to match the lowest bid of 92 paise.

Others insurance companies who bid for the Railway tender were HDFC Ergo, Reliance General Insurance, Apollo Munich, New India Assurance, Tata AIG, Bharti Axa, National Insurance, Iffco Tokio, Bajaj Allianz, Oriental, Star Health & Allied, CholaMandalam MS, United India and Future Generali India.

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