Insure yourself before u board a Mumbai Suburban Train

Indian Railways have insured all rail passengers against death or injury in train ‘accidents’ as defined under Section 124 of the Railways Act, 1989 Similarly all rail passengers and platform ticket holders are also insured against death or injury on account of ‘untoward’ incidents as defined under Section 124A of the Act.

Compensation for death or permanent disability is Rs 4 lakh.In case of injuries, the minimum amount is Rs 32,000 and maximum is Rs 3.60 lakhs, according to the seriousness of injury sustained

This is done through a safety cess introduced for safety. Railway accidents and untoward incidents like rioting, robbery, dacoity or bomb blast on any train is covered by the insurance policy. About 7,000 trains run daily carrying about 1.6 crore passengers across the country.

But what you dont know is that Indian Railways insured each of its passengers for just 4.75 paisa through ICICI-Lombard this year while the amount was 6.20 paisa per passenger last year thanks to competitive rates offered by private insurance companies.

A Mumbai Suburban train, which is supposed to carry around 1700 commuters, carries appx 5,000 in Mumbai resulting in a Super-Dense Crush Load condition. The annual traffic density, about 255 million passenger-km per km of route, is believed to be the world record for passenger rail transport. Trains which should be junked after 25 years ply till 35 years.

Plus the govt has virtually washed its hands off the security of citizens against terrorist strikes. Remember the treatment given to the victims of the multiple blasts by the rail authorities plus the rumor about floating of idea of taxing compensation by someone the ministry or cbdt ( rejected due to public outcry) or how the whole incidents were investigated or how adequate safety measures put in place are?

Thus the odds of a Mumbaikar being in an accident or a terror attack are statistically speaking the highest world over

There are more than 6,000 cases pending in the Railway Claims Tribunal. Accident claims are contested and it takes five years to get compensation.

Mumbaikars are among the most honest tax paying citizens and ticket paying travellers and pay a buck a ticket towards insurance, while everyone knows how honest the rail ministers or his home state citizens are. So we should petition added insurance for all Mumbaikars including regular travellers and pass holders.

So my advise to you especially if ur a regular Mumbai Suburban Rail peak hour traveler follow Uday Shettys advise…get urself extra insurance policy or rider along with ur regular policy.

1. Because it is tax deductible (accountant speak)
2. Because it costs less than a months dth /cable rent.

*Oriental Insurance Company charges Rs 225 as premium per year for Rs 5 lakh Railway Insurance Policy against death or accident.

3. Because someone fears for your life at home.


7 thoughts on “Insure yourself before u board a Mumbai Suburban Train

  1. What about passengers killed in a stampede due to overcrowding of railway stations like the incident that took place yesterday in Bihar?

    Everything is possible in Bihar , yes it is sad but this is also partly due to peoples unruly behavior and poor organisation but more because most people dont pay for already heavily subsidised long distance fares and the net result is that govt does not have too much money to focus on additional trains or coaches ….plus there are costs of over staffing and rail Mantris perks and politicians perks and bureaucrats perks- i may be wrong on the stats but
    priority here is fill trains to overcapacity where 50+% are freeloaders..

  2. “.. get urself extra insurance policy or rider along with ur regular policy.”

    If two policies are in force at any given time to cover the same exigency, and there is a potential claim on from the insurer on another party, the second policy may not pay out at all, at least till the claim is settled or blame established.

    So while you may want to get another policy, do read the fine print and exclusions.

    BTW increasingly travel and other policies are including terrorism related claims of injury and death. Terrorism is the new ‘Act of God’ clause!

    Hey Shefaly welcome to my blog – sorry im responding late
    u raised an important point here
    but that may not apply to these specific policy s if they are custom made by the insured
    to include accidents including fatalities due to terror strikes – even tata aig had one
    dont know about the fine print though and expect everyone to read
    plus the first policy is a state guarantee not something the holder took on his own so there
    is no conflict or intention of scaming the system

  3. Hi Prax: I did not suggest that this is tantamount to ‘scamming’ the system; just that a private insurer will not pay out if a claim is outstanding on the same incident from a larger, federal insurer.

    I hope you do not ever have to test the truth in this. Some people in the UK learnt through recent natural and man-made disasters that this holds good.

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