Lok Sabha Question No. 605 (UNSTARRED), answered on 2020-02-05
Subject: Accident Insurance
Ministry: RAILWAYS
Asked by: Deepak Baij

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO. 605 TO BE ANSWERED ON 05.02.2020

## ACCIDENT INSURANCE

†605.  SHRI DEEPAK BAIJ:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether it is true that Railways is planning to get the work done through participation of private sector;
- (b) if so, the details thereof;
- (c) the amount of fund received from the rail passengers so far in lieu of the accidental insurance under the online Rail Accident Insurance Scheme;
- (d) the total fund provided to passengers so far in lieu of accidents;
- (e) the fund received by the Railways out of this; and
- (f) the benefit accrued by the insurance companies  each year out of the insurance of passengers?

## ANSWER

## MINISTER OF RAILWAYS AND COMMERCE & INDUSTRY (SHRI PIYUSH GOYAL)

(a) and (b): Indian Railway Catering and Tourism Corporation(IRCTC), a  wholly  owned  undertaking  of  Ministry  of  Railways,  had  initially entered into an agreement with three Insurance Companies namely:

- (i) Shriram General Insurance Company Ltd.,
- (ii) ICICI Lombard General Insurance Company Ltd., and
- (iii) Royal Sundaram General Insurance Co. Ltd.

to provide an insurance cover of  up to ` 10 lakh w.e.f 01.09.2016 on optional basis at the premium of `0 .92 per passenger per trip  for the Confirmed/RAC railway passengers who book online e-ticket through official website of IRCTC.

Subsequently, on the direction of Ministry of Finance to promote digital/cashless transaction, the insurance was provided free of cost from  10.12.2016  to  31.08.2018  wherein  the  premium  was  not collected from the passengers but was paid by IRCTC themselves to the Insurance companies.

Thereafter,  on  the  direction  of  Ministry  of  Finance,  the  free  of cost insurance was discontinued beyond 31.08.2018 and the Original Optional Travel Insurance was extended on pilot basis for one more year  i.e.  from  01.09.2018  to  31.08.2019  on  optional  basis  wherein the  insurance  premium  was  to  be  paid  by  the  passengers  buying From 0.49/-

Confirmed/RAC online e-tickets from IRCTC website. 01.10.2018, the premium  for the insurance scheme  is ` (inclusive of all taxes) per passenger per trip.

The optional Insurance scheme has been further extended from 01.09.2019  to  31.08.2020  and  three  Insurance  companies  namely M/s Bharti Axa General Insurance Co. Ltd, M/s Bajaj Allianz General Insurance  Co.  Ltd.,  and  M/s  Shriram  General  Insurance  Co.  Ltd., selected  by  IRCTC  on  tender  basis,  are  providing  the  insurance facility to the passengers.

The  Sum  assured  to  be  given  to  victim  passenger/family  or legal heir of the victim are as follows:-

- (i) In case of Death -`
- 10 lakh,
- (ii) Permanent Total Disability -`
- 10 Lakh,
- (iii) Permanent Partial Disability - up to ` 7.5 Lakh,
- (iv) Hospitalization Expenses for Injury -`
- (v) Transportation of mortal remains -`
- 2 Lakh,
- 10 Thousand.

Under the scheme, sum assured is paid to the victim/family or legal heir of the victim as the case may be, in case of death/injury of reserved  passengers  due  to  train  accident/untoward  incidents  as defined under Section 123 read with Sections 124 and 124-A of the Railways  Act,  1989;  subject  to  the  qualification  that  the  coverage will be valid from the actual departure of train from the originating station to actual arrival of train at the destination station including 'process of entraining' and 'process of detraining' the train.

(c):  A total amount of ` 21.55 crores has been received by IRCTC on account of premium from  Rail Passengers and paid to the Insurance companies between the period from 01.09.2016 to 31.12.2019.

- (d): A total amount of ` 12.49 crores has been paid by the Insurance companies to the passengers in lieu of accidents.
- (e):  No amount has been received by the Railways as the premium is paid directly to the Insurance companies and there is no provision in the agreements to get any commission from the Insurance companies.
- (f):   There  is  no  way  for  Railways  to  assess  this  and,  therefore, Railways does not have such information.

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