Home >Money >Personal Finance >Indian Railways offers insurance at less than 50 paise per train passenger. How it works

What can you buy for 50 paise? Well, financial products such as travel insurance. Indian Railways Catering and Tourism Corporation (IRCTC) offers you an insurance cover of up to 10 lakh at a near-zero premium of 49 paise. Passengers have an option of opting the 'Travel Insurance' while booking train tickets through IRCTC website. If you exercise the option while booking your train, the travel insurance will be applicable for all passengers booked under one PNR (Passenger Name Record).

Eligibility for IRCTC travel insurance

Only the Indian citizens booking tickets through the IRCTC website or mobile app will be eligible to buy the insurance cover. The policy covers death, permanent total disability, permanent partial disability and hospitalization expenses for injury and transportation of mortal remains following rail accident or untoward incident, according to the IRCTC website.

The maximum cover is up to 10 lakh, in which you get a cover of 10 lakh for death or permanent total disability due to rail accident or any untoward incident. A coverage of 7.5 lakh is available in for permanent partial disability. The 2 lakh coverage for hospitalization expenses for injury is over and above the death or disability coverage. 10,000 for the transportation of mortal remains.

Step-by-step procedure to get IRCTC travel insurance

A passenger needs to click on the 'Travel insurance' section while booking the ticket. Then, he/she will receive the policy information through a SMS and on their registered email IDs directly from insurance companies. A link will be provided to file the nomination details.

After booking the ticket, the passenger has to fill the nomination details at respective insurance company site. There are three insurance companies which provide rail insurances for ticket bookings via IRCTC website or app — Bharti Axa General Insurance, Bajaj Allianz General Insurance and Shriram General Insurance.

Once the premium is paid by the passengers no cancellations is allowed, said IRCTC. There won't be any refund of the premium in all cases including wait-listed ticket.

If nomination details is not filled then the settlement shall be made with legal heirs, if the claim arises, IRCTC mentioned in the release. IRCTC travel insurance will not be provided for the children below 5 years of age. IRCTC has kept travel insurance scheme uniform for all classes.

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