How to book train insurance for less than a rupee, claim up to Rs 10 lakh

The tragic train accident in Odisha has once again brought to light the importance of travel insurance, safety and financial protection of rail passengers.

While Railway Minister Ashwini Vaishnaw has announced an ex gratia payment of Rs 10 lakh in case of death, Rs 2 lakh for the grievously injured and Rs 50,000 for those with minor injuries following the triple train crash in Balasore district of Odisha on June 2,  not everyone is aware about the travel insurance passengers  can opt for  by paying only  Rs 0.35  while booking tickets on IRCTC.

How to apply for the train travel insurance:

The Indian Railway Catering and Tourism Corporation (IRCTC) provides an optional travel insurance policy for passengers buying tickets from its online portal.  For e-ticket passengers, the policy provides cover in case of injury or death during a train journey.

The premium w.e.f 01-Nov-2021 is Re. 35 paise per passenger inclusive of  all taxes.

The traveller has to select the insurance option at the time of booking ticket. Note that once the ticket has been booked you cannot choose insurance.

What does the insurance policy cover:

Through this facility, IRCTC provides insurance coverage of up to Rs 10 lakh to its passengers. 

If a passenger dies in a train accident or suffers permanent total disability, then an insurance amount of up to Rs 10 lakh is paid.

If the passenger suffers permanent partial disability, then he or she is given Rs 7.5 lakh as compensation. In case of an injury arising out of the accident, hospitalisation expenses to the tune of Rs 2,00,000 is paid for and Rs 10,000 is paid in case of transportation of mortal remains.

Only Indian citizens can opt for it

The scheme is applicable only for Indian Citizens who book their e-ticket through NGeT Website Application only. Citizen of foreign countries are not eligible for this scheme.

How does the insurance scheme work:

1. The scheme is optional, however if the option is exercised it will be compulsory for all passengers booked under one PNR number.
2. Optional Travel Insurance facility is provided only for CNF/RAC/Part CNF ticket at the time of booking.
3. Customer shall receive the policy information through SMS and on their registered email IDs directly from Insurance Companies along with the link for filling nomination details. However, Policy number can be viewed from Ticket booked history at IRCTC Page.
4. After the booking of ticket, the nomination details to be filled at respective Insurance Company site.
5. If nomination details is not filled then the settlement shall be made with legal heirs, if the claim arises.
6.  The coverage for the policy shall be for each passenger under the PNR in case of Death, Permanent Total Disability, Permanent Partial Disability, and Hospitalization Expenses for Injury and Transportation of mortal remains following Rail Accident or untoward incident.

Children under the age of 5 are not covered

The optional travel insurance will not be provided for the children below 5 years of age who book the ticket without berth/seat.

Which insurance company will be liable?

In case of passenger opting for insurance, the claim/liability shall be between insured and the Insurance Company. The two insurance companies are Liberty General Insurance Ltd. and SBI General Insurance Co. Ltd

 Travel insurance scheme is uniform

The Travel Insurance Scheme is kept uniform for all classes ( SL, 1 AC, 2AC, 3 AC)

 

Personal belongings are not covered under the scheme

What is covered under the scheme:

1. Up to Rs 10 lakh in case of death or permanent total disability
2. Up to Rs 7.5 lakh in case of permanent partial disability
3. Up to Rs 10,000 for transportation of mortal remains

Death:

If during the Trip, the Insured sustains accidental bodily injury which directly and independently of all other causes results in death within 12 months from the date of accident or untoward incident. The 100% of the Sum Insured stated in the Schedule applicable to such Insured is payable.

Permanent disability:  

If during the Trip, the Insured sustains accidental bodily injury which directly and independently of all other causes results in permanent total disability within 12 months from the date of accident or untoward incident, 100% of the Sum Insured stated in the Schedule applicable to such Insured is payable.

Permanent disability

If the Insured sustains accidental bodily injury during the Trip that directly and independently of all other causes results in permanent partial disability within 12 months of the date of the accident or untoward incident, 75% of the Sum Insured is payable.

Hospitalisation Expenses:

The Insurance Company shall indemnify the Insured for the expenses, upto Rs2 lakh, incurred by the Insured for Hospitalization and medical treatment, taken on account of any Injury sustained by the Insured whilst on a Trip during the Period of Insurance.

The Medical Expenses incurred for Hospitalization Treatment will include:

a. Room rent, boarding expenses,(Room Rent to be capped at 2% of the sum insured and ICU/CCU to be capped at 4% of the sum insured)

b. Nursing,

c. Intensive care unit,

d. Medical Practitioner,

e. Anesthesia, blood, oxygen, operation theatre charges, surgical Appliances,

f. Medicines, drugs and consumables,

g. Diagnostic procedures,

h. The cost of prosthetic and other devices or equipment if implanted internally during a Surgical Procedure.

i. No OPD charges to be covered. However, procedures followed under day care shall also be covered.

j. A Hospital means any institution established for inpatient Care and Day Care treatment for illness and/or injuries and which has been registered as a Hospital with the local authorities

k. In case happening of an accident, initial treatment be taken from nearest hospital of accident site and upon written referral of this hospital, treatment be taken from any specialized hospital

Transportation of mortal remains:

If the Insured dies solely and directly due to train accident and untoward incidents as defined under section 123 read with sections 124 and 124A of the Railways Act, 1989, occurring during the Trip, then the Insurance Company will reimburse Rs.10,000/- as the cost of either transporting his mortal remains to his usual place of residence or to a cremation or burial ground. No documentary evidence is required to be produced.

Claims Procedure & Documentation

The Insured or his nominee or legal heir shall deliver to the nearest office of the Insurance Company, not later than 4 months from the date of occurrence of the Insured Event, a detailed statement in writing as per the claim form and any other material particular, relevant to the making of such claim.

The Insured or his nominee or legal heir shall tender to the Insurance Company all reasonable information, assistance and proofs in connection with any claim hereunder.

Proof in accordance with the policy details shall be furnished to the Insurance Company in connection with all matters upon which a claim is based.

Documents required for death claim:

Documentation required:

Submit the duly filled in claim form signed by nominee/legal heir along with the NEFT mandate details and cancelled cheque with the following documents:

• Report of the Railway Authority confirming the accident of the train or untoward incident

• Report of the Railway Authority carrying the details of the passengers

 eclared dead.

• Duly Completed Personal Accident Claim Form signed by Nominee / Legal

Heir along with the NEFT mandate details & cancelled cheque

• Photo identity proof of nominee

• For Death Claims, claim will be settled only to nominee declared at the time

of buying insurance through IRCTC portal

• In absence of nominee, claim will be paid to Legal Heir only – as per Legal

Heir / Succession Certificate

In case of Disablement Claim:

• Report of the Railway Authority confirming the accident of the train or untoward incident

• Report of attending doctor confirming the extent of disability.

• Medical bills corresponding to doctor’s prescription.

• Duly Completed Personal Accident Claim Form signed by insured / Nominee

• Attested copy of disability certificate from Civil Surgeon of that Hospital in which the treatment has undergone stating percentage of disability.

• Attested copy of FIR.

• All X-Ray / Investigation reports and films supporting to disablement.

• Claim form with NEFT details & cancelled cheque of the beneficiary

• Photograph before & after disability

In case of Hospitalization Expenses for Injury

Report of the Railway Authority confirming the accident of the train or untoward incident

Discharge summary Original Hospital Bills and medical bills corresponding to doctor’s prescription

Advance and final receipts (All receipts shall be numbered, signed an stamped)

Prescriptions for medicines

Diagnostic Test Reports, X Ray, Scan, ECG and others including doctor’s advice demanding such tests)

Cash memos/bills for medicines purchased from outside

Where do the claim documents have to be sent?

The claim documents should be sent to the Claims department of the nearest Office of the Insurance Company through which this insurance is effected. List of the address of the office of the Insurance Company can be obtained from the website of the Insurance Company.

Claims Settlement / Rejection

1. Benefits payable under this policy will be paid within 15 days of the receipt of last necessary document.

2. The Insurance Company shall be released from any obligation to pay insurance benefits if any of the obligations are breached

3. All claims under this Policy shall be payable in Indian Currency.

4. The Insurance Company shall be liable to pay any interest at 2% above the bank rate prevalent at the beginning of the financial year in which the claim is reviewed, for sums paid or payable under this Policy, upon acceptance

of an offer of settlement by the insured but there is delay in payment beyond 7 days the date of acceptance.

5. No Claim is admissible beyond 365 days from date of expiry of the policy in respect of hospitalization commencing within the Period of Insurance.

6. No liability under the Policy will be admitted, if the claim is fraudulent or supported by fraudulent means.

7. At the time of claim settlement, Insurance Company may insist on KYC documents of the insure/nominee/legal heir as per the relevant AML guidelines in force

You can also choose to buy a travel insurance policy on your own

Alternatively, you can purchase travel insurance on your own to ensure that you are covered for any unforeseen circumstances that may arise during your journey. However, the decision to purchase travel insurance is a personal one. Consider factors such as the length of the journey, the route, and assess the value of the belongings you are carrying with you. 

"Research the options and compare policies from different providers to find one that best suits your needs. Choose the coverage offered by the policy and ensure it provides adequate protection for the duration of your trip. Check if the policy covers medical expenses, loss of personal belongings, and other emergencies, among other things. Ensure that the policy offers compensation for accidental death and disability, as this can provide financial security in the event of an unexpected incident. Read the fine print of the policy carefully to understand the exclusions and limitations, so you are aware of what is covered and what is not," said Adhil Shetty, CEO of BankBazaar.