A person booking a train ticket through the IRCTC website will be able to opt for travel insurance cover for a premium of 92 paise only from 31 August.
Railway minister Suresh Prabhu had in his budget speech announced that the railways will provide optional travel insurance for train journey at the time of booking
The new facility will be available to all passengers excluding those traveling on suburban trains while booking online irrespective of the class. It will be started on a trial basis.
The cover will not be applicable for children up to 5 years of age and foreign citizens. It will be for passengers holding tickets such as confirmed, RAC and waitlisted ones, said the official.
The scheme offers travelers/nominees/legal heirs a compensation of:
Rs 10 lakh in the event of death or total disability,
Rs 7.5 lakh for partial disability,
up to Rs2 lakh for hospitalization expenses and
Rs10,000 for transportation of mortal remains from the place of a train accident or where an untoward incident, including terrorist attack, dacoity, rioting, shootout or arson, occurs.
The scheme is being implemented by IRCTC in partnership with ICICI Lombard General Insurance, Royal Sundaram General Insurance and Shriram General Insurance selected through a bidding process.
However, no refund of the premium will be given in the case of cancellation of the ticket.