IRCTC’s 45‑Paisa Promise

Reality Shots
IRCTC’s 45‑Paisa Promise

The story

I’ve booked hundreds of train tickets without thinking twice about that tiny, ticked-by-default “Travel Insurance” line on IRCTC. Then I read the fine print and the Odisha (Balasore) crash numbers. Only 22 claims were filed out of 624 insured passengers. Just two were fully settled. That’s when I realised: the insurance isn’t fake, but the gap between what we think it does and how it actually pays is massive.

What the IRCTC policy actually is (and costs)

  • It’s optional, available only when you book a CNF/RAC/PartCNF e‑ticket on IRCTC.
  • Since 17 February 2024, the premium is 45 paise per passenger (all taxes included).
  • The standard benefits per passenger: ₹10 lakh (death/PTD), ₹7.5 lakh (PPD), ₹2 lakh (hospitalisation for injury), and ₹10,000 (transport of mortal remains).
  • You’ll receive the policy by SMS/email straight from the insurer with a link to enter your nominee. If you don’t fill it, the claim may still be paid—but to your legal heirs, with more paperwork and more delay.

The Odisha wake-up call: why numbers matter

Post the 2 June 2023 Odisha crash, IRDAI said 624 passengers were insured; 22 claims worth ₹60.52 lakh were filed (2 permanent total disability, 15 partial disability, 5 hospitalisation). Only 2 claims (₹2.25 lakh) were settled quickly—20 were pending for want of documents. Translation: the policy wasn’t the problem; documentation and processes were.

Insured Passengers
624
Claims Filed
22
Claims Settled
2

🎥 Watch This Before Your Next Train Journey!

I recorded a video breaking down IRCTC’s travel insurance how it works, real claim stats, and the fine print you can’t ignore.

The biggest friction nobody talks about: Nominee vs Legal Heir

You’ll get an email/SMS to update your nominee after booking. If you don’t, the insurer will pay your legal heir(s) not necessarily the person you wanted. And even if you do add a nominee, Indian law treats the nominee largely as a custodian; legal heirs can still claim unless a valid Will or succession law says otherwise. Recent High Court rulings continue to reinforce this nuance. So yes, fill the nominee—but also make sure your broader estate planning is in place.

Less than half of passengers are insured

Counter bookings and general/unreserved coach tickets don’t get this cover, and awareness is abysmally low. Multiple reports peg insured penetration at below 50%. Meanwhile, IRCTC at times auto-checked the box (allowing manual opt-out), but that still doesn’t reach millions who don’t use e-tickets. 

Passenger Coverage: Who Is Actually Insured?

45% Insured
■ Insured   ■ Not Insured

What’s actually covered (and not)

Covered (per passenger on the PNR):

  • Death / Permanent Total Disablement: ₹10 lakh
  • Permanent Partial Disablement: up to ₹7.5 lakh
  • Hospitalisation (injury only): up to ₹2 lakh (room rent @ 2% SI, ICU @ 4% SI, doctors, diagnostics, implants, etc.; OPD excluded)
  • Mortal remains transport: ₹10,000 (no documentary proof needed)

Not covered / typical exclusions include self-harm, intoxication, illegal acts, war/civil commotion, many medical conditions not arising from an accident, OPD-only treatment, and travel outside the “journey window.”  

The paperwork maze (and timelines you can’t miss)

  • Notify the insurer within 4 months of the incident.
  • Be ready with Railway accident/untoward incident report, medical/disability certificates, bills, FIR (for disability), X-rays/reports, ID & bank proofs, and policy/PNR details.
  • Claims must be filed within 365 days post policy expiry for hospitalisation that began within policy period. Delayed payments must carry 2% over bank rate beyond 7 days after settlement agreement. Fraud = rejection. KYC is mandatory at settlement. 
Accident Occurs
Day 0
Notify Insurer
Within 4 Months
Claim Submission
Within 365 Days

The structural problem

The coverage is cheap and real, but:

  1. Awareness is low (counter & general coach travellers miss out).
  2. Nominee/legal-heir confusion slows payouts.
  3. Documentation gaps stall settlements (as Odisha showed).
  4. Scope is narrow it’s an accident cover for serious loss, not baggage delays, trip cancellation, etc. 

Claim Status: Settled vs Pending

2 Settled / 20 Pending
■ Settled   ■ Pending

What should change (policy ideas)

  • Default, universal cover for all rail passengers, with government/insurer cross-subsidy instead of a “checkbox lottery.”
  • Single national claims portal with auto-fetch of PNR, policy, and accident data to cut paperwork.
  • Proactive insurer outreach post-accident (IRDAI did push for this in 2023—needs to be standardised & monitored).
  • Clear nominee nudges on the PNR itself (“Nominee not updated. Click to finish.”). 
Tip: Always update your nominee after booking your IRCTC ticket to avoid claim delays.

For ₹0.45, this is a no-brainer. But it only works if you do three things: opt in, fill the nominee, and keep the documents ready. The big myth is that “insurance doesn’t pay.” The smaller, uglier truth is: it often can’t pay until you prove what the fine print demands. Odisha’s numbers tell us exactly that.

Reference links 

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