From September 1, Indian Railway Catering and Tourism Corporation (IRCTC) would offer optional travel insurance to railway passengers, for a premium of just Re 1 while booking an e-ticket. It would be initially introduced on a trial basis, according to a report published by India Today.

The scheme would offer travellers and their families a compensation of up to Rs 10 lakh in the event of death or total disability, Rs 7.5 lakh for permanent partial disability, up to Rs 2 lakh for hospitalisation expenses, and Rs 10,000 for transportation of mortal remains in the event of death or injury from a train accident or other 'untoward incident' including terrorist attacks, dacoity, rioting, shoot-out or arson, as well as for short termination, diverted route and Vikalp trains. Train accident and untoward incident cases will be as per definition under Sections 123 read with Sections 124 and 124A of the Railways Act, 1989.

The families would have to make the claim immediately but not later than four months after the event. The insurance company would process the claim and pay within 15 days of the receipt of document.

The insurance cover would be available for all e-tickets but not for sub-urban trains. IRCTC is offering the travel insurance in partnership with ICICI Lombard General Insurance, Royal Sundaram and Shriram General.