Train ticket insurance from October 27: How much cover will passengers get?

The court has directed that all tickets sold over the counter must be covered from October 27. This is a mandatory direction to the Railways.

The Supreme Court has directed Indian Railways to extend insurance coverage to all train tickets purchased at railway station counters from October 27, 2026, bringing offline bookings under the same insurance framework as online reservations.  The existing online scheme offers up to ₹10 lakh for death or permanent total disability, but the premium and process for offline bookings remain to be clarified.

 

The directive was issued by a bench of Justices Ahsanuddin Amanullah and R Mahadevan on October 6 while hearing a case concerning railway safety following the June 2023 Odisha train accident. The court said it had given the authorities sufficient time to develop a mechanism for covering offline passengers but found that progress had not been made. It made the implementation mandatory and held the Railway Board directly responsible for any failure to comply.

 

 

"The SC’s decision strengthens the importance of travel insurance and recognises it as an essential safeguard rather than an optional add-on. For millions of Indians who rely on railways as an affordable and accessible mode of transport, insurance at an affordable premium can provide crucial financial support to passengers and their families in the event of unforeseen accidents. This move brings the safety and well-being of the common man into sharper focus and reinforces the need to make financial protection an integral part of every journey," said Manas Kapoor, Business Head – Travel Insurance, Policybazaar.

 

Here is what the order means for passengers, how much insurance coverage is available under the existing online scheme, and what remains to be clarified.

 

1. What has the Supreme Court ordered?

 

From October 27, all tickets sold over the counter at railway stations must be covered by insurance in the same manner as tickets purchased online, according to the court's directive.

 

Until now, passengers booking through the Indian Railway Catering and Tourism Corporation (IRCTC) website or mobile app could opt for travel insurance during the booking process. Passengers purchasing tickets at station counters did not have access to the same facility.

 

The court said there should not be a distinction between passengers based on how they purchase their tickets. 

 

2. How much insurance coverage can passengers get?

 

Under the existing optional online railway travel insurance scheme, passengers receive coverage for specified losses arising from railway accidents and certain other covered incidents during the journey.

 

The existing coverage limits are: 

Under the existing optional online railway travel insurance scheme, passengers are covered for specified losses arising from railway accidents and other covered incidents during the journey.

 

 

These are the coverage amounts reported for the existing online scheme. The Railways' implementation of the Supreme Court's order will determine how the policy is issued and administered for counter bookings.

 

3. Will passengers have to pay extra for insurance?

 

Under the existing online scheme, travel insurance is optional and costs 45 paise per passenger, inclusive of taxes, according to the report. Online passengers can select the insurance option while booking their tickets.

 

 The court has directed that counter tickets receive insurance coverage in the same manner as online tickets, but passengers should wait for the Railways to clarify how the mandate will be implemented at reservation counters.

 

4. Will insurance be automatic for tickets bought at railway counters?

 

The Supreme Court has directed that all tickets sold over the counter must be covered by insurance from October 27. This is a mandatory direction to the Railways, rather than an optional facility that passengers must independently choose.

 

However, the practical process for issuing insurance certificates, identifying insured passengers and handling claims for counter-booked tickets will depend on the mechanism implemented by the authorities.

 

Passengers should check official railway announcements for instructions on whether they will need to provide any additional details or retain specific documents to establish coverage.

 

Hospitalisation expenses following injury. The amount payable depends on the nature of the loss and the applicable policy terms.

 

Passengers and their families should retain their tickets and relevant travel records, along with medical documents and other evidence required for a claim. They should also verify the applicable policy terms and claim procedure once the Railways announces the arrangements for offline bookings.

 

The Supreme Court's directive does not mean that every injury or incident will automatically qualify for the maximum amount. Claims remain subject to the coverage terms and the applicable conditions.

 

5. What should passengers do if there is an accident?

 

The existing scheme provides specified benefits for covered events, including death, disability and hospitalisation expenses following injury. The amount payable depends on the nature of the loss and the applicable policy terms.

 

Passengers and their families should retain their tickets and relevant travel records, along with medical documents and other evidence required for a claim. They should also verify the applicable policy terms and claim procedure once the Railways announces the arrangements for offline bookings.

 

The Supreme Court's directive does not mean that every injury or incident will automatically qualify for the maximum amount. Claims remain subject to the coverage terms and the applicable conditions.

 

6. Why did the Supreme Court intervene?

 

The insurance issue arose during proceedings concerning railway safety after the Odisha train accident in June 2023. The case also raised concerns about the implementation of the Kavach train protection system and other safety measures.

 

The court had previously asked the Railways to work out a mechanism to extend insurance to passengers buying tickets at station counters. At the October 6 hearing, it expressed disappointment over the lack of progress and said assurances from the authorities had not translated into sufficient action on the ground.

 

The bench warned that responsibility for failure to implement the insurance directive would rest directly with the Railway Board. 

 

7. What does this mean for railway passengers?

 

The order seeks to close a gap between online and offline ticket bookings. Passengers who buy tickets at station counters will no longer be excluded from the insurance framework simply because they do not book digitally.

 

The immediate next step is for Indian Railways to implement the order by October 27 and clarify the arrangements for counter-booked tickets, including the premium, documentation and claims process.

 

At a glance

 

Effective date: October 27, 2026.

 

Who is covered: Passengers purchasing tickets over railway station counters, under the Supreme Court's directive.

 

Existing online premium: 45 paise per passenger, inclusive of taxes.

 

Maximum existing coverage: ₹10 lakh for death or permanent total disability.

 

What remains to be clarified: The detailed process for issuing and administering insurance for offline tickets.