Rail passengers opting for 45-paise travel insurance at counters must pay
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Railway passengers will need to pay for optional travel insurance through digital means starting October 27. This change follows a Supreme Court order requiring digital transactions for insurance premiums. The 45-paise premium cannot be paid in cash due to certain coins no longer being legal tender. Passengers who cancel tickets will forfeit part of the insurance premium along with other fees.
Passengers buying railway tickets at reservation counters who opt for travel insurance will have to pay digitally from October 27, as the 45-paise premium cannot be collected in cash, the Railway Board has said.The facility, already available to passengers booking tickets online, is being extended to physical reservation counters following a Supreme Court order dated October 6, according to officials.
The Railway Board has directed all zonal railways to ensure that the insurance premium is collected along with the ticket fare through digital modes whenever a passenger opts for the cover.
"Where a passenger opts for insurance, the applicable premium shall be collected along with the ticket fare through digital means only. Staff shall ensure that where the person is opting for insurance, payment is done through digital means," the board said in a letter to zonal railways.
Officials said the requirement stems from the fact that 5, 10, 20 and 25-paise coins are no longer legal tender, making digital payment necessary for collecting the premium.
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The Centre for Railway Information Systems (CRIS), which manages the reservation software, has completed the required modifications, with testing underway ahead of the rollout.
"We have made the required changes in the software, and testing is currently underway. It will be implemented from tomorrow," a CRIS official said.
The official added that passengers cancelling their tickets would forfeit 9 paise from the 45-paise premium, in addition to other applicable cancellation charges.
In a letter dated October 24, the Railway Board asked zonal railways to prepare their Passenger Reservation System (PRS) counters for the rollout from October 27.
"The requisite system development and integration for implementation of the scheme are being undertaken by CRIS in coordination with IRCTC. The Zonal Railways should ensure the necessary field-level preparedness and implementation at PRS counters in accordance with the system and procedures prescribed for this purpose," the letter said.
The optional travel insurance scheme provides coverage of up to Rs 10 lakh in case of death or permanent total disability, Rs 7.5 lakh for permanent partial disability, Rs 2 lakh towards hospitalisation expenses for injuries and Rs 10,000 for transporting mortal remains. The premium is 45 paise per passenger, inclusive of taxes, and has been in effect since February 17, 2024.
"The existing terms and conditions of Optional Travel Insurance Scheme (OTIS) for e-ticket passengers as issued by IRCTC are equally applicable to insurance policies issued in respect of tickets purchased through PRS counters," the Railway Board said.
The insurance facility is available only for tickets that are confirmed (CNF), under Reservation Against Cancellation (RAC), or partially confirmed (PartCNF) at the time of booking, the board said.
Passengers travelling on a single PNR with a mix of confirmed and waiting-list passengers can also be covered, provided they choose the insurance option, a railway official said.
"Let's say four persons are travelling on one PNR, and one has a confirmed berth while the remaining three are on the waiting list. If they decide to travel, all four will get insurance at 45 paise per passenger."
The Railway Board has also instructed reservation staff to accurately record passengers' mobile numbers, which are mandatory, along with other required details. The information will be transmitted to the insurance company for issuance of the policy.
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