Indian Railways made digital payment mandatory for counter-ticket travel insurance starting October 27, 2026. Officials said, "Where a passenger opts for insurance, the applicable premium shall be collected along with the ticket fare through digital means only." This change follows a Supreme Court order to help passengers get insurance coverage easily.
Passengers opting for travel insurance while buying railway tickets at the counters will have to pay the entire amount, including the 45 paise insurance premium, digitally from October 27, as the premium cannot be collected in cash.
Officials said that since 5, 10, 20 and 25-paise coins are no longer legal tender, the ticket fare and the insurance premium have to be paid online.
"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 Railway Board has said in a letter addressed to all zonal railways.
Since passengers purchasing tickets online already have access to this optional insurance facility, the Railway Board has now extended it to physical ticket counters, pursuant to a Supreme Court order dated October 6.
Software changes to enable facility from October 27
Officials from the Centre for Railway Information Systems (CRIS) said that the necessary software modifications were being made to extend the facility to counter-ticket purchasers.
"We have made the required changes in the software, and testing is currently underway. It will be implemented from tomorrow," a CRIS official said, adding that on cancellation of the ticket, 9 paise will be deducted from the premium amount of 45 paise along with other cancellation charges.
"PRS counters under the respective Zonal Railways shall be suitably prepared to offer the insurance facility with effect from 27.10.2026, in accordance with the functionality made available in the reservation system," the Railway Board said in its letter dated October 24, 2026.
"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 added.
Insurance covers death, disability and hospitalisation
At present, passengers purchasing tickets online can opt for insurance coverage of Rs 10 lakh in the event 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 the transportation of mortal remains. The premium is 45 paise per passenger, and the insurance is optional.
"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.
Confirmed and RAC passengers eligible
Highlighting one of the eligibility conditions, the board said that the optional travel insurance facility is available only for confirmed (CNF), Reservation Against Cancellation (RAC) and partially confirmed (PartCNF) tickets at the time of booking.
"The premium, with effect from February 17, 2024, is 45 paise per passenger, inclusive of all taxes," the board said.
Clarifying the eligibility of passengers travelling on partially confirmed tickets, 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."
Mobile numbers mandatory for policy issuance
The board also stated that reservation staff must ensure that passengers' mobile numbers, which are mandatory, and other requisite passenger details are accurately recorded in accordance with the prescribed reservation procedures. This will facilitate the transmission of the relevant information to the insurance company for the issuance of the policy.