Indian Railways Travel Insurance: Supreme Court Orders Counter-Ticket Coverage

Indian Railways Travel Insurance Latest News

• In a significant move aimed at protecting passengers from marginalised sections of society, the Supreme Court ordered the Railway Board earlier this month to extend travel insurance to offline/counter tickets. 
• Currently, this facility is optional and available only for online-booked tickets. The court directed implementation by October 27, 2026, warning of consequences for non-compliance.

Why the Order Came Now

• The plea arose from the June 2023 Balasore train accident in Odisha, which killed 296 people, seeking a commission of inquiry into the crash.
• As a result, the Apex Court set a firm deadline, warning sharply: “if the Court finds that there has been no substantial progress… the Court may have to consider whether the Railway Board, as presently constituted, is fit to be permitted to continue in office.”

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Current State of Railway Insurance

• Train passengers are entitled to compensation for accidents and untoward incidents as defined under the Railways Act, 1989 — separate from and in addition to the railways’ own compensation liability for passenger death/injury.
• Existing Rule: Travel insurance is optional and offered only to e-ticket (online) passengers.
• How it Works: Railways merely links passengers to insurance companies via its website; the claim and liability rest between the passenger and the insurer — not the railways.

Eligibility Restrictions

• Scheme applies only to Indian citizens — foreign nationals are ineligible.
• Covers only confirmed, partly confirmed, and RAC (Reservation Against Cancellation) tickets at the time of booking.
• Waiting-listed passengers (who travel on counter-purchased tickets) are NOT covered.

Premium And Coverage

• Premium: 45 paise per passenger (inclusive of taxes), as fixed in February 2024.
• Covers: Death, permanent total disability, partial disability, hospitalisation expenses for injury, and transportation of mortal remains.
• Sum insured: Ranges from ₹2 lakh to ₹10 lakh, depending on severity.

Why This Gap Matters: Who Gets Left Out

• With rising digitisation, counter ticket bookings have declined sharply — over 87% of all reserved tickets are now booked online. 
• However, those who still rely on offline/counter bookings are predominantly from the lowest socio-economic strata and remote areas — a reality the Supreme Court explicitly recognised.
  • The Court observed that it had “granted sufficient time to the authorities to devise a mechanism for extending such coverage to persons belonging to the lowest strata of society, who, in most cases, purchase their tickets at the railway reservation counters.”

Other Significant Exclusions From Current Insurance Coverage

• Second class/general class passengers — who form the majority of train travellers — are not covered.
• Even for reserved classes (SL, 1AC, 2AC, 3AC), insurance is unavailable for passenger trains and suburban trains.
• Children under 5 years (ticketed without berth/seat) are not covered.
• Children aged 5–11 years (ticket with or without berth) ARE covered.
• Regardless of category, once insurance is opted for, the claim and liability remain strictly between the insured passenger and the insurance company — railways plays no role in settlement.

Conclusion

• The Supreme Court’s order exposes an uncomfortable irony in Indian Railways’ digital transformation: as online ticketing becomes the default, the very passengers most likely to need financial protection — counter-ticket buyers, waitlisted travellers, and general-class passengers from the lowest socio-economic strata — have been left outside the insurance net. 
• By setting a firm deadline and threatening institutional accountability, the Court has pushed railways toward a more inclusive safety framework, though the real test will be how quickly this gets implemented across India’s offline ticketing system.

Source: IE