Indian Railways had come up with a new feature on its online ticketing website, IRCTC in December 2017. The government website had decided to provide free insurance to passengers that booked their tickets online. The motive was to encourage customers to book their tickets online as well as spread awareness about travel insurance.
Now, Indian Railways has taken back the provision of free insurance. Instead, travelers will have to purchase it during the time of check out. The insurance is still available on booking tickets online. The service was discontinued on September 1.
The insurance will be available for all passengers reserved seats including sleeper, AC and chair car. The travel insurance covers both death and injury. In case of death, the insurer is liable to pay Rs 10 lakh to the insured. In case of permanent or partial disability, the insurer will pay a sum of Rs 7.5 lakh (this is over and above the compensation provided in times of crisis). In case of injury, the insurer will have to pay a sum of Rs 2 lakh.
IRCTC will be pairing up with ICICI Lombard General Insurance, Royal Sundaram General Insurance, and Shri Ram General Insurance to provide cover for its travelers. The website will charge 92 paise per ticket which is expected to go up to Re 1 with the inclusion of taxes.