Chanakya IAS Academy Blog



The Indian Railways has recently started an insurance scheme for its passengers. It was announced in the railway budget 2016-17. Under the new scheme, the railways provides an insurance cover of up toRs 10 lakhs at a premium of mere 92 paise (even less than a rupee!) which is one of the cheapest in the world.

To whom is the facility available?

The facility is available to all passengers booking e-tickets and travelling by passenger trains except the suburban trains. The facility is available for Indians only, not for foreign passengers. It is also not applicable for children below 5years.

The scheme is applicable for passengers with confirmed, RAC or wait listed tickets.

It is an optional scheme and it is up to you to opt for the insurance cover.

The premium is paid while booking the ticket from the irctc website.

What is the scheme?

The insurance company will pay the nominee a sum of

  • Rs. 10 lakhs in case of death or total disability.
  • Rs. 7.5 lakhs in case of partial disability.
  • Upto Rs. 2 lakhs for hospitalization expenses.
  • Rs.10,000 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.

Statistics: According to the National Crime records Bureau, in 2014, 28,360 rail accidents were reported, in which 3882 were injured and 25,006 lost their lives.

Is there a refund of the premium?

No. The premium will not be refunded in case of cancellation of the ticket.

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