The competition fostered by the entry of the private sector in the insurance business has had a spinoff effect in the railway insurance business. Premiums are lower than ever and more and more ordinary people have benefitted from claims.Today by paying just 4.75 paisa per passenger, insurance is available against accidents and untoward incidents including terror attacks.this was 6.20 paisa per passenger last year."Because of the participation of private companies in the bidding, we are paying the premium at competitive rates. It was 6.70 paisa in 2005-06 which has come down to 4.75 paisa this year," said a railway official.ICICI-Lombard, a leading private sector insurance firm, has got the railway insurance account for Rs 34.35 crore as the premium covering an estimated 650 crore passengers in 2007-08. The contract is effective from September 20 this year to September 19, 2008.Railway accidents and untoward incidents like rioting, robbery, dacoity or bomb blast on any train is covered by the insurance policy."A person in the waiting room, cloak room, platform or any other place within the railway premises affected by any untoward incident is also liable for compensation as per the amended Railway Act," said the official.About 7,000 trains run daily carrying about 1.6 crore passengers across the country. Last year, it was Anil Ambani-promoted Reliance General Insurance Company which had bagged the railway contract for Rs 39.15 crore and before that United Insurance had got it for Rs 42.10 crore in 2005-06.There were 414 train accidents in 2001-02, which has come down to 233 in 2005-06 and 232 in 2004-05. The number of accidents have come down because of various safety measures, including anti-collission device, auxiliary warning system, safeguard at unmanned level crossings, adopted by the railways, said the official.Earlier railways used to pay compensation only in the case of train accidents. However, after the amendment in Railway Act in 1994, all rail passengers and platform ticket- holders are insured against death or injury on account of untoward incidents."Even a person in reservation or booking office is also covered under the Act. As a result, the number of compensation claimants has increased," said the official. 400 cases of compensation were filed in 1994. This has gone up to 19,000 cases now. The compensation amount has also gone up.While compensation for death or permanent disability increased from Rs 2 lakhs to Rs 4 lakh, in case of injury the minimum compensation was increased from Rs 16,000 to Rs 32,000 and the maximum amount was increased from Rs 2 lakh to Rs 4 lakh.
