People buying reserved train tickets at railway reservation counters must make a digital payment for the entire transaction from Tuesday, October 27, if they opt for travel insurance. The Railway Board made this change because coins are no longer legal tender. Passengers can still book tickets without opting for insurance.
For passengers travelling on a ticket booked for multiple people, at least one passenger named on the ticket must carry the prescribed original identity proof. (Image: Unsplash)
People buying reserved train tickets at railway reservation counters will have to make a digital payment for the entire transaction from Tuesday, October 27, if they opt for travel insurance. The 45-paise insurance premium cannot be paid in cash along with the ticket fare.
The Railway Board has extended the optional travel insurance facility, previously available to passengers booking tickets online, to those purchasing tickets at Passenger Reservation System (PRS) counters. The move follows a Supreme Court order dated October 6, according to a PTI report.
The insurance remains optional, but passengers choosing the cover must pay the premium through digital means. The Railway Board has directed zonal railways to ensure that their reservation counters are ready to implement the facility.
Why is digital payment mandatory?
The insurance premium is 45 paise per passenger, inclusive of all taxes. Since coins of 5, 10, 20 and 25 paise are no longer legal tender, the Railway Board has directed that the premium be collected digitally rather than in cash.
The Centre for Railway Information Systems (CRIS), which manages the reservation system, has made the required software changes, with testing underway ahead of implementation on October 27, a CRIS official told PTI.
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The system development and integration are being carried out by CRIS in coordination with the Indian Railway Catering and Tourism Corporation.
Passengers who do not want insurance can continue to book tickets without opting for the facility. However, those who choose the cover at a reservation counter must be prepared to make a digital payment for the ticket fare and premium.
What does the 45-paise insurance cover?
The Optional Travel Insurance Scheme (OTIS) provides financial protection against specified incidents during train travel. The coverage available to passengers booking online also applies to policies issued for tickets purchased at reservation counters.
The insurance provides the following benefits:
* Death or permanent total disability: Cover of Rs 10 lakh.
* Permanent partial disability: Cover of Rs 7.5 lakh.
* Hospitalisation expenses for injuries: Cover of up to Rs 2 lakh.
* Transportation of mortal remains: Cover of Rs 10,000.
The premium is 45 paise per passenger, inclusive of taxes, and has been in effect since February 17, 2024, according to the Railway Board.
The cover is optional, and passengers should understand its terms and conditions before choosing it. The amount payable under a policy will depend on the applicable insurance terms and the circumstances of the claim.
Who is eligible for the insurance?
The facility is available for confirmed (CNF), Reservation Against Cancellation (RAC) and partially confirmed (PartCNF) tickets at the time of booking.
The Railway Board has clarified that the existing terms and conditions applicable to passengers booking e-tickets will also apply to policies issued against tickets purchased through PRS counters.
The insurance can cover passengers travelling on a single ticket booking even when their reservation status differs. For instance, a booking for four passengers may include one confirmed berth and three passengers on the waiting list. If the passengers decide to travel, all four can receive insurance coverage at 45 paise per person, a railway official told PTI.
The premium for four passengers would therefore total Rs 1.80.
Passengers must provide their mobile numbers, which are mandatory, along with other required booking details. Reservation staff have been instructed to ensure that these details are recorded correctly so that the information can be sent to the insurer for issuing the policy.
What happens if you cancel the ticket?
Passengers cancelling their tickets will not receive the entire insurance premium back. A CRIS official told PTI that 9 paise will be deducted from the 45-paise premium, in addition to other applicable ticket cancellation charges.
The deduction means that the refundable portion of the premium would be 36 paise per passenger, subject to the applicable cancellation process.
Passengers should also distinguish between the insurance premium and railway cancellation charges. The latter are governed by the applicable ticket cancellation rules and will be levied separately.
What should passengers do?
Passengers purchasing reserved tickets at railway counters from October 27 should keep the following points in mind:
Carry a digital payment option: If you want insurance, you must pay the fare and premium digitally.
Check eligibility: The scheme covers confirmed, RAC and partially confirmed tickets at the time of booking.
Provide your mobile number: Correct contact details are necessary for the insurer to issue the policy.
Assess the cover: Review the policy terms and exclusions before opting for insurance, even though the premium is nominal.
Understand cancellation deductions: A deduction of 9 paise applies to the premium when the ticket is cancelled, apart from other applicable charges.
The extension brings counter bookings in line with the online reservation process for optional travel insurance. While the premium is only 45 paise per passenger, travellers opting for the cover will need to account for the new digital payment requirement when booking tickets in person.