IRCTC to provide automatic insurance cover for passengers

Passengers who book their train tickets on IRCTC portal are now automatically provided insurance cover of Rs. 10 lakh unless the passengers opt out of the scheme.
It appears the IRCTC made the change in the travel insurance scheme perhaps keeping in view the tragic train accident in Odisha that killed 288 passengers and injured over 1000.
Earlier, passengers were given the option to opt for the insurance if they are interested. But now the scheme has been changed to opt out of the insurance scheme, lest the passenger is automatically provided insurance cover.
The premium charged for Rs10 lakh personal accident insurance cover is a paltry Re.0.35 paise. The policy covers death/disabilities/medical expenses due to a train accident during the travel. The premium amount will further come down from 35 paise if all the train passengers are offered the travel insurance cover.
The insurance cover is provided by two non-life insurers “SBI General Insurance Company Ltd and Liberty General Insurance Company Ltd.
According to sources, the change could be due to the tragic train accident in Odisha last month killing 288 passengers and injuring over 1,000.
According to the Insurance Regulatory and Development Authority of India (IRDAI), a total of 624 passengers were having insurance cover under the IRCTC travel accident insurance scheme. A total of 22 claims totalling Rs 60.52 lakh were reported to the two insurers for disability and hospitalisation due to the Odisha train accident and no death claim has been lodged.