You paid less than Re 1 for railway insurance. But what exactly did you buy?
Published by India Today
Abhishek Kumar's role: Quoted
Abhishek Kumar explained that the low premium works because risk is pooled across millions of passengers, and said the cover should be seen as a group accident benefit. He also set out key exclusions and common reasons for claim rejection.
What Abhishek Kumar said
How can railway travel insurance cost less than a rupee?
Insurance is a game of probability. The premium can stay nominal because the cover is underwritten as a group across millions of railway passengers, and the vast majority of them finish their journeys safely without ever claiming. I suggest treating it as an accident cover bought as part of a large group, not as a full personal policy: the advertised amount is a fixed benefit for specific serious events, not flexible financial protection.
What does railway travel insurance cover, and what does it leave out?
It covers injuries from a train accident, a derailment or a designated untoward incident, and it specifically includes accidents while you are actually boarding or getting off the train. It does not cover natural death, pre-existing illness, general sickness, suicide or self-inflicted injury, accidents on another date, injuries after you leave the station or reach your destination, or accidents resulting from unauthorised acts like crossing the tracks instead of using a foot overbridge.
How do I make a claim under railway travel insurance, and why do claims get rejected?
The claim goes directly to the office of the insurance company handling the policy. You will need a completed claim form, the accident report from the railway authorities, the hospital's discharge summary, the original bills and your KYC papers. Many claims are rejected because the passenger cannot show that the incident counts as a formal railway accident, because papers are missing, or because the claim was filed after the allowed time.
Should I buy railway travel insurance if I already have personal accident cover?
If you already have a comprehensive personal accident policy, this cover is largely redundant and fills no big gap for a traveller who is already well insured. That said, its price is negligible, so opting for it still adds one more safety net for the family members who depend on you. It is a small cost for an extra layer, not a replacement for your own accident cover.
In our words, from what he said in the piece. General information, not personal advice.
More of Abhishek's views on insurance
The article explains the optional railway travel insurance offered for less than Re 1 at ticket booking. It sets out the cover for accidental death, disability, injury hospitalisation and transport of remains, and notes that illness, missed trains and incidents outside the journey are not covered. It also covers the claim process and nominee details.
Publisher source
You paid less than Re 1 for railway insurance. But what exactly did you buy?