Some assurance: Rail insurance scheme sees 3.5 million sign up in 10 days

IRCTC to also develop Rail Museum as entertainment park

The passenger insurance scheme by Indian Railways (IR) — which became operational on September 2 — has got 3.5 million customers in just 10 days. The Railways is now gearing up to extend it to unreserved passengers as well, linking it with their Aadhaar. 
 

The scheme had grabbed headlines after Railways announced a premium of 92 paise per passenger for insurance coverage up to Rs 10 lakh. “In 10 days, it became an instant hit with passengers. We are planning to link it with Aadhaar and bank accounts, so that the claimed amount goes directly to their bank accounts. Moreover, there is also a plan to extend the scheme to unreserved passengers,” said A K Manocha, chairman & managing director of Indian Railway Catering and Tourism Corporation (IRCTC), an IR subsidiary that handles online ticketing, catering and rail tourism. The scheme is currently available to those travellers, who book tickets online. 
 

On a daily basis, the IRCTC website sees 3.2 million logins. Around 550,000 tickets are booked via the website on a daily basis. On Day One of the insurance scheme launch, 100,000 passengers had opted for it, which later increased to an average of 350,000 per day.
 

The three companies providing insurance are Shriram General Insurance, ICICI Lombard and Royal Sundaram General Insurance. These companies were shortlisted through competitive bidding, which also saw the participation of 17 companies.
 

“We will have to invite fresh tender, if the scheme gets extended to unreserved passengers as well. In that case, we expect the premium to be as low as one paise. Linking with Aadhaar may give more teeth to the scheme,” he added. 
 

In the case of death or permanent disability of the traveller, Rs 10 lakh will be provided. For permanent partial disability, the coverage extends to Rs 7.5 lakh; for hospital expenses, the coverage would be up to Rs 2 lakh. In addition, the insurance would provide Rs 10,000 for transportation of mortal remains. Apart from rail mishaps, the coverage would take care of terrorist attacks and accidental falls from trains, riots, robberies and dacoity.
 

The IRCTC is set to take over operations of the National Rail Museum in Delhi after 5 pm every day. Currently, the Railway Board manages operations of the museum in Chanakyapuri. According to plan, the company will run two restaurants and may develop it as an amusement-cum-entertainment park at night.
 

The National Rail Museum, which focuses on the rail heritage of India, started its operations on February 1, 1977. It is located over 10 acres of land, with both indoor and outdoor exhibits. “We will develop it as an entertainment park. The museum will be open till 1 am every day. We plan to give it out for film shoots and high-profile events,” he added.