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The Indian Railways (IR) has selected three insurance companies Shriram General Insurance, ICICI Lombard General Insurance and Royal Sundaram General Insurance for insuring its passengers. To begin next month, it would be among the cheapest in the world, at a premium of 92p a passenger for coverage up to Rs. 10 lakh. The three were selected through competitive bidding, among 17 companies. At first, insurance would be available for those who book tickets online. Later, the scheme could be extended to season ticket travellers, where for a premium of Rs. 200-300, they will get annual coverage.
“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, chairman and managing director of Indian Railway Catering and Tourism Corporation (IRCTC), an IR subsidiary that handles online ticketing, catering and rail tourism.
In the case of death or permanent disability of the traveller, Rs. 10 lakh will be provided. For permanent partial disability, the coverage extends to Rs. 7.5 lakh; for hospital expenses, the coverage would be up to Rs. 2 lakh. In addition, the insurance would provide Rs. 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 insurance policies on a rotation basis from an automated system. Shriram General Insurance was the lowest bidder, quoting 92p. ICICI Lombard quoted 99p and Royal Sundaram Rs. 1.15. The other two will have to match the lowest bid of 92p.
