In a move to strengthen passenger safety and financial security, Indian Railways has rolled out an ultra-low-cost travel insurance scheme for online ticket bookers through the Indian Railway Catering and Tourism Corporation (IRCTC) platform. Under the Optional Travel Insurance Scheme (OTIS), travellers can get insurance coverage of up to ₹10 lakh for a premium of only 45 paise.
The scheme provides protection in case of train-related accidents, including derailments, collisions, and terrorist attacks, making it one of the most affordable travel insurance plans in the country.
The insurance is available for Confirmed and RAC (Reservation Against Cancellation) passengers booking tickets via:
IRCTC website
IRCTC mobile application
Passengers simply need to tick the ‘opt-in’ box during ticket booking. The premium amount is automatically added to the total fare, making the process seamless.
| Coverage Type | Amount Covered | Description |
|---|---|---|
| Death / Permanent Total Disability | ₹10,00,000 | Compensation in case of death or total irreversible disability due to train accident. |
| Permanent Partial Disability | Up to ₹7,50,000 | Based on the severity of partial disablement as per the policy schedule. |
| Hospitalisation Expenses | Up to ₹2,00,000 | Covers medical costs due to injuries sustained during travel. |
| Transportation of Mortal Remains | Up to ₹10,000 | For transporting the deceased passenger to the place of residence or as per policy terms. |
Policy details are sent via SMS or email after ticket booking, ensuring passengers have instant access to their insurance documents.
Only available for online ticket bookings through IRCTC platforms.
Not applicable for waitlisted tickets, children below 5 years, or tickets booked at railway counters/international portals.
Railway Minister Ashwini Vaishnaw informed the Lok Sabha that 333 claims have been successfully settled over the last five years, with ₹27.22 crore disbursed to beneficiaries.
In the event of an accident, passengers or their nominees must contact the insurance company directly, as IRCTC is not involved in claim settlements. The nominee’s details must be updated immediately upon receiving the policy link to ensure smooth claim processing.
This scheme is a major leap towards digital integration in public transport services. It offers:
Financial protection at a negligible cost.
Encouragement for passengers to use digital ticketing platforms.
Improved passenger confidence in Indian Railways’ safety measures.
Conclusion
The IRCTC Optional Travel Insurance Scheme stands out as one of the most affordable and accessible safety nets for train passengers in India. By offering a substantial coverage of up to ₹10 lakh for a mere 45 paise, Indian Railways has made passenger safety both inclusive and budget-friendly.
This initiative not only protects travellers from unforeseen mishaps such as derailments, collisions, or terrorist incidents but also ensures financial security for their families in times of crisis. With a seamless opt-in process during online ticket booking and transparent claim settlement handled directly by insurance companies, the scheme reflects Indian Railways’ commitment to integrating technology with passenger welfare.
The impressive claim settlements in recent years highlight its reliability and effectiveness. Ultimately, this travel insurance is more than just a financial product—it’s a reassurance that safety and care are being prioritised, even at the most minimal cost to passengers.