An amount of Rs 100 will be paid in case the delay is for over an hour and Rs 250 for delay of over two hours, the IRCTC said ahead of the launch of its first train.
This latest offer is in addition to the Rs 25-lakh free insurance that will be given to passengers of the train.
Tejas Express is the first private train in the country.
This travel insurance also includes a coverage of Rs 1 lakh against household theft and robbery during travel period of the passengers, again a first for those travelling on board trains.
The train will be flagged off on October 4.
Many countries and cities over the globe compensate passengers for delays - some do so as monetary compensation and some in kind.
In Japan and Paris, a delay certificate is issued to passengers by railway companies as proof that a train arrived at a station later than stated in the company's scheduled timetable which can be shown in schools or offices for late admission at university exams. The certificate is issued when delays as little as five minutes occur. In the UK, rail passengers are entitled to get automatic compensation for delayed journeys.
The IRCTC said a passenger is required to fill up a claim form with the insurance company in the link provided online or lodge a claim for train delay on its toll free number. The claim can be lodged through registered post also at the insurance company address.
On the submission of the required documents, the insurance company will settle the claim within two to three days, the IRCTC said.
"As the issuance of policy numbers will be delayed for the current reservation and on train bookings and a claim can be processed only after issuance of policy, it may take 3 to 4 days after the date of journey to process such claims," IRCTC said.
The train is scheduled to make its first commercial run on October 5.
The New Delhi to Lucknow Tejas Express ticket will be priced at Rs 1,280 for AC chair car passengers and Rs 2,450 for executive chair car. The train will operate on dynamic fare scheme.
Free tea and coffee will be offered through vending machines and water will be provided through RO machines for passengers on demand.
Just like in flights, meals will be served by onboard service staff by trolleys.
A similar system is followed in Japan for their Shinkansen trains in which passengers travel without any onboard luggage which are picked up by service providers and left at the destination of their choice, enabling the travellers to travel hassle-free.