Travel Insurance

IRCTC: How IRCTC’s 35 paise travel insurance works; process to claim up to Rs 10 lakh

A tragic incident involving a train accident in Odisha brought to light the significance of safety and financial protection for railway passengers. The Indian Railways offers a travel insurance program for a low cost of 35 paise per passenger to provide some level of insurance protection.

IRCTC provides travel insurance on e-tickets as an optional service for a small price, which the traveler must select at the time of booking. Note that once the ticket has been booked you cannot choose insurance. However, it is not mandatory to buy travel insurance while booking a ticket through IRCTC.

According to IRCTC website, the premium with effect from November 1, 2021 is 35 paise per passenger inclusive of all taxes.

Travel Insurance Scheme shall be kept uniform for all classes:

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Here are 5 benefits of applying for insurance, according to the IRCTC terms and conditions pageBenefit 1 – In case of Death
Death If during the Trip, the Insured sustains accidental bodily injury which directly and independently of all other causes results in death within 12 months from the date of accident or untoward incident. The 100% of the Sum Insured stated in the Schedule applicable to such Insured is payable. Benefit 2 – In case of Permanent total disability of nature specified below
Permanent total disability
If the Insured sustains accidental bodily injury during the Trip that results in permanent total disability within 12 months of the date of the accident or untoward incident, 100% of the Sum Insured stated in the Schedule applicable to such Insured is payable. Permanent total disability will be defined as one of the following for the purposes of this insurance, and compensation will be given in accordance with the table below.

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Benefit 3 –In case of Permanent partial disability of nature specified below
Permanent partial disability
If the Insured sustains accidental bodily injury during the Trip that directly and independently of all other causes results in permanent partial disability within 12 months of the date of the accident or untoward incident, 75% of the Sum Insured is payable. Permanent partial disability shall be defined as one of the following for the purposes of this Insurance, and compensation will be paid in accordance with the table below:

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Benefits-4 Hospitalization Expenses for Injury
The Insurance Company shall indemnify the Insured for the expenses, up to Rs. 2 lakh, incurred by the Insured for Hospitalization and medical treatment, taken on account of any Injury sustained by the Insured whilst on a Trip during the Period of Insurance.

Benefit -5 Transportation of mortal remains:
According to the IRCTC terms and conditions page, “If the Insured dies as specified in the Table of Benefits described hereunder, solely and directly due to train accident and untoward incidents as defined under section 123 read with sections 124 and 124A of the Railways Act, 1989, occurring during the Trip, then the Insurance Company will reimburse Rs.10,000/- as the cost of either transporting his mortal remains to his usual place of residence or to a cremation or burial ground. No documentary evidence is required to be produced.”

IRCTC: What is the claim procedure & documentation

  • The Insured or his nominee or legal heir shall deliver to the nearest office of the Insurance Company, not later than 4 months from the date of occurrence of the Insured Event, a detailed statement in writing as per the claim form and any other material particular, relevant to the making of such a claim.
  • The Insured or his nominee or legal heir shall tender to the Insurance Company all reasonable information, assistance and evidence in connection with any claim hereunder.
  • (ii)Proof in accordance with the policy details shall be furnished to the Insurance Company in connection with all matters upon which a claim is based.

Documentation required:
In case of Death Claim:
The properly completed claim form, which must be signed by the nominee or legal heir, should be submitted with the following paperwork:

  • Report of the Railway Authority confirming the accident of the train or untoward incident
  • Report of the Railway Authority carrying the details of the passengers declared dead.
  • Duly Completed Personal Accident Claim Form signed by Nominee / Legal Heir along with the NEFT mandate details & canceled check
  • Photo identity proof of nominee
  • For Death Claims, claim will be settled only to nominee declared at the time of purchasing insurance through IRCTC portal
  • In absence of nominee, claim will be paid to Legal Heir only – as per Legal Heir / Succession Certificate.

In case of Disability Claim:

  • Report of the Railway Authority confirming the accident of the train or untoward incident
  • Report of attending doctor confirming the extent of disability.
  • Medical bills corresponding to doctor’s prescription.
  • Duly Completed Personal Accident Claim Form signed by insured / Nominee
  • Attested copy of disability certificate from Civil Surgeon of that Hospital in which the treatment has undergone stating percentage of disability.
  • Attested copy of FIR.
  • All X-Ray / Investigation reports and films support disablement.
  • Claim form with NEFT details & canceled check of the beneficiary
  • Photograph before & after disability.

In case of Hospitalization Expenses for Injury

  • Report of the Railway Authority confirming the accident of the train or untoward incident
  • Discharge summary
  • Original Hospital Bills and medical bills corresponding to doctor’s prescription
  • Advance and final receipts (All receipts shall be numbered, signed and stamped)
  • Prescriptions for medicines
  • Diagnostic Test Reports, X Ray, Scan, ECG and others including doctor’s advice demanding such tests)
  • Cash memos/bills for medicines purchased from outside.

According to the IRCTC, “The claim documents should be sent to the Claims department of the nearest Office of the Insurance Company through which this insurance is effected. List of the addresses of the offices of the Insurance Company to be obtained from the website of the Insurance Company.”

Claims Settlement / Rejection
1. Benefits payable under this policy will be paid within 15 days of the receipt of last necessary document.
2. The Insurance Company shall be released from any obligation to pay insurance benefits if any of the obligations are breached.
3. All claims under this Policy shall be payable in Indian Currency.
4. The Insurance Company shall be liable to pay any interest at 2% above the bank rate prevalent at the beginning of the financial year in which the claim is reviewed, for sums paid or payable under this Policy, upon acceptance of an offer of settlement by the insured but there is a delay in payment beyond 7 days the date of acceptance.
5. No Claim is admissible beyond 365 days from date of expiry of the policy in respect of hospitalization commencing within the Period of Insurance.
6. No liability under the Policy will be admitted, if the claim is fraudulent or supported by fraudulent means.
7. At the time of claim settlement, Insurance Company may insist on KYC documents of the insure/nominee/legal heir as per the relevant AML guidelines in force.