Railway passengers from next month, booking tickets through the Indian Railway Catering and Tourism Corporation, (IRCTC) website can avail a travel accident cover of Rs. 10 lakh at a premium of one rupee.
IRCTC Chairman-cum-Managing Director A.K. Manocha said that the insurance cover is besides the compensation given by the railways in case of accidents to valid ticket holders.
The insurance will provide coverage against death, injury and disabilities caused due to accidents.
"At the moment, the insurance offer is under integration process and we expect it will be operationalised from September," he said.
He said compensation would be also provided by the insurance company in case of hospitalisation due to train accidents.
"We have selected three insurers—Shriram General, Royal Sundaram and ICICI Lombard—which will provide the cover. A total of 19 insurance companies were short-listed for the contract," Manocha said.
These three were selected through the bidding process, he said.
However, it is the passengers' choice to opt for the insurance as it is a voluntary offer, he clarified.
About five lakh tickets are at present booked online through IRCTC.