Railway sought after by insurance companies

Railway sought after by insurance companies


New Delhi: Indian Railway is being sought after by insurance companies as each time you travel by train you are insured for just 4.75 paisa against accidents and untoward incidents including terror attacks.

Indian Railways insured each of its passengers for just 4.75 paisa this year while the amount was 6.20 paisa per passenger last year. A senior railway official attributed the low rate of premium for each passenger to competitive rates offered by private insurance companies.

“Because of the participation of private companies in the bidding, we are paying the premium at competetitive rates. It was 6.70 paisa in 2005-06 which has come down to 4.75 paisa this year," said the official.

ICICI-Lombard, a leading private sector insurance firm, has got the railway insurance account for Rs34.35 crores as premium covering an estimated 650 crore passengers in 2007-08. The contract is effective from 20 September this year to 19 September 2008. Railway accidents and untoward incidents like rioting, robbery, dacoity or bomb blast on any train is covered by the insurance policy.

“Even if a person in the waiting room, cloak room, platform or any other place within the railway premises is affected by any untoward incident is 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.