Railways Travel Insurance A to Z

Railways Travel Insurance A to Z  

A travel insurance cover of up to Rs. 10 lakh can be availed while booking a train ticket online by paying less than one rupee from 31 August 2016. 

The claims under the new scheme is Rs. 10 lakh in case of death, Rs. 10 lakh in case of Permanent Total Disability, Rs. 7.5 lakh in case of permanent partial disability, Rs. 2 lakh for hospitalization expenses for injury and Rs. 10,000 for transportation of mortal remains. 

Conditions of Railways Travel Insurance

The passenger insurance scheme was introduced by the railways on September 1, 2016 for 92 paise. 

  The scheme is applicable only for Indian Citizens who book their e-ticket through IRCTC Website Application only.

  The Railways Insurance is optional while booking the ticket . If the option is exercised it will be compulsory for all passengers booked under one PNR number.

  The premium is 92 paise per passenger inclusive of all taxes.
  It is for passengers holding tickets such as confirmed, RAC and wait-listed ones.

  On cancellation of the ticket, no refund of the premium will be given.

  The Travel Insurance Scheme is uniform for all classes, 2AC, 3AC etc.

 The cover is not be applicable for children upto 5 years of age and foreign citizens.

  In case of passenger opting for insurance, the claim/liability shall be between insured and the Insurance Company

  The scheme offers travellers/nominees/legal heirs a compensation of

    Rs 10 lakh in the event of death or total disability,

    Rs 7.5 lakh for partial disability,    upto Rs 2 lakh for hospitalisation expenses and

    Rs 10,000 for transportation of mortal remains from the place of a train accident or where an untoward incident, including terrorist attack, dacoity, rioting, shootout or arson, occurs.

 After booking of ticket, the nomination details are to filled at respective Insurance Company site. You will receive the policy information through SMS and on your registered email IDs directly from Insurance Companies along with the link for filling nomination details. However, Policy number can be viewed from Ticket booked history at IRCTC Page.

   If nomination details is not filled then the settlement shall be made with legal heirs, if the claim arises.

Railways Travel Insurance is being implemented by IRCTC in partnership with ICICI Lombard General Insurance, Royal Sundaram General Insurance and Shriram General Insurance.  

How to buy Indian Railways Travel Insurance.. ?

  Login to the your account on irctc.co.in

  Plan your journey.

  When you book the tickets, Fill the passenger details.

  At the bottom of adding passenger details is an option for opting for Travel Insurance as shown in Image below


  Click on next and you will be re-directed to payment option selection. Here you will find the break up of travel charges. You notice that  92 paisa also added to your travel amount.

  Select the payment option and book your tickets.

  Once tickets confirmed, then you will receive policy information through SMS and on your registered email IDs directly from Insurance Companies along with the link for filling nomination details. 

 Policy number can be viewed from Ticket booked history on IRCTC Website

How to claim Indian Railways Travel Insurance ?

One needs Report of the Railway Authority confirming the accident of the train or untoward incident. Report of the Railway Authority carrying the details of the passengers declared dead.

Claim Indian Railways Travel Insurance in case of Death

Claim will be settled only to nominee declared at the time of buying insurance through IRCTC portal. If nomination not opted, then  claim will be paid to Legal Heir only – as per Legal Heir / Succession Certificate.

  Insured person, nominee or legal heir must visit nearest branch office of Insurance Company within the 4 months from the date of accident.

  Duly Completed Personal Accident Claim Form signed by Nominee / Legal Heir along with the NEFT mandate details & cancelled cheque.Photo identity proof of nominee or legal heir.

  Proof of insurance policy details also must be submitted.

  Benefits will be payable by Insurance Company within 15 days of such documents received.

  If there is a delay, then Insurance companies have to pay more than 2% of rate of interest of bank rate.

  Claim will not be acceptable beyond 365 days from the date of expiry of policy.

 Claim will be rejected if found to be fraudulent or supported by fraudulent.

Claim Indian Railways Travel Insurance For Disablement 

  Report of the Railway Authority confirming the accident of the train or untoward incident.

  Report of attending doctor confirming the extent of disability.

  Medical bills corresponding to doctor’s prescription.

  Duly Completed Personal Accident Claim Form signed by insured / Nominee.

  Attested copy of disability certificate from Civil Surgeon of that Hospital in which the treatment has undergone stating % of disability.

  Attested copy of FIR.

  All X-Ray / Investigation reports and films supporting to disablement.

  Claim form with NEFT details & cancelled cheque of the beneficiary.

  Photograph before & after disability.

Claim Indian Railways Travel Insurance For  Hospitalization

  Report of the Railway Authority confirming the accident of the train or untoward incident.

  Discharge summary.

  Original Hospital Bills and medical bills corresponding to doctor’s prescription.

  Advance and final receipts (All receipts shall be numbered, signed and stamped).

  Prescriptions for medicines.

  Diagnostic Test Reports, X Ray, Scan, ECG and others including doctor’s advice demanding such tests).
  Cash memos/bills for medicines purchased from outside.

History of Railways Travel Insurance

The Railway Passenger Insurance Scheme. was introduced in the 1993-94 railway budget and was administered by the Railway Claims Tribunal. Details of the policy can be read on Railways Tribunal website. It was discontinued on September 20, 2008 , citing higher premiums as a reason. 

Compensation under the scheme was decided as per the Railway Accident and Untoward incidents (Compensation) Rules 1990.  ICICI Lombard was the last insurer for this scheme between September 20, 2007 and September 19, 2008. According to this expired scheme, any passenger with a valid ticket or pass including platform ticket is insured and they are entitled to a compensation of up to Rs 4 lakh in case of any untoward incidents.

Railways and Accidents

On an average, about 15,000 people are said to die in rail mishaps yearly. According to the National Crime Records Bureau, in 2014, 28,360 rail accidents were reported, in which 3,882 were injured and 25,006 lost their lives. 

About 59% of IR tickets are booked online. The IRCTC site sees 3.2 million average daily user log-ins, with an average of 550,000 tickets booked a day, for about a million passengers.

An estimated 15-20 million had opted for the scheme in these 85 days. This compares to 3.2 million log-ins a day on the website and up to 700,000 bookings a day. Newspapers say only about 30 per cent of all tickets booked online opt for travel cover, though the premium of 92 paise for a passenger is one of the lowest in the world.


Impact Of Demonetization On The Indian Hospitality Industry..!

Impact Of Demonetization On The Hospitality Industry..!

  by Mr. Mandeep Lamba, Managing Director - Hotels, JLL India

Over the short and medium terms, the demonetization drive will have varied effects on the many sections of the hospitality industry in the country, but in the long term will positively impact the growth of the hospitality sector. 

Often, the strong season for the hospitality sector in the country extends from October to March, which to a large extent defines the success for the industry in any given year. The lack of available currency will force some hospitality customers to either postpone / cancel their travel and accommodation or to use hospitality products that easily allow the use of the other modes of payments.

The demonetization drive will benefit the organized hospitality sector in India the most. Combined with the general uptake in the sector, the movement of customers to the organized sector due to ease of alternate modes of payment will positively impact the market. However, given the larger base of hotel rooms in the country is in the unorganized sector, we anticipate the general performance of the industry to witness some stress in the short term.

The hospitality and the tourism markets are renowned for their ability to create a large number of direct and indirect jobs in the country. With the inability of customers / tourists to easily spend on frills due to lack of available currency, the unorganized industry will suffer the most in its ability to create new jobs. The impact of demonetization will also be felt by the suppliers of consumable goods, who often work on cash transactions with their wholesale counterparts. 

The unorganized inventory of hotels in the industry will be most impacted by this move. In addition, the leisure sector hotels and restaurants segment will see a higher impact on account of the discretionary nature of spending in this sector, and the substantially larger base of cash transactions that occur in its when compared to mainstream business hotels.

Mandeep Lamba,
Managing Director -
Hotels, JLL India

Also, the restaurants business - both in hotels and standalone - will see a short-term slowdown in growth on account of the reduced availability of cash and the generally high usage of cash spending in restaurants. 

The organized banqueting business will witness growth, as customers move from the almost cash-only unorganized sector of standalone party venues and farm houses to hotels for want of non-cash means of payment. The weddings business will also return to Indian hotels from their Overseas counterparts, as unofficial channels for offshore transfers of cash have dried up, forcing the cancellation of many Indian weddings from foreign locales back to hotel venues in India.      

The tourism and hospitality sectors are intrinsically tied to the economic conditions of any country. The boost provided by the demonetization move to the macro economy of the country will effectively trickle down to the industry.

With banks being flush with liquidity, we anticipate a major reduction in interest costs, which augurs well for the growth of the industry. 

As more liquidity enters the organized sector along with some further softening of land rates and gradual movement towards cleaner real estate transactions, we anticipate investments into the sector to increase from the organized players who have, in the past, shied away due complexities associated with underlying real estate.


Investing Mantra's - Stock - The liabilities are always 100% good - . Charlie Munger

Investing Mantra's
 Investing Mantra's - Stock

The liabilities are always 100% good.
It is the assets you have to worry about.

- Mr. Charlie Munger

Amendment Bill :Income tax at 50% of the undisclosed income

Finance Minister Mr. Arun Jaitley introduced an amendment bill for Income Tax law On 28 November 2016.  

According to this amended bill, who declared his undisclosed income or Black Money since the ban on Rs. 500 and Rs. 1 000 has announced will have to pay 30% tax of the undisclosed income.

Along with 30% tax 10% penalty will also be imposed on Undisclosed Income and Surcharge (PMGK Cess) of 33% of tax amount (33% of 30% of Undisclosed Income).  

Moreover, declarants have to deposit 25% of undisclosed Income after demonetisation in the Pradhan Mantri Garib Kalyan Yojna.

·         Income tax at 30% of the undisclosed income,

·         Penalty at 10% of the undisclosed income.

·         Further, a surcharge to be called Pradhan Mantri Garib Kalyan Cess at 33% of tax is also proposed to be levied.

·         Totalling to about 50%
·         In addition to tax, surcharge and penalty (totalling to about 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’. No interest will be paid to the owner for this. After four years the owner can reclaim his money (25%).                                                 
For Undisclosed income of Rs. 5 lakh

·         Income Tax at 30% of the undisclosed income, Tax will be Rs. 1.5 lakh

·         Penalty at 10% of the undisclosed income,  penalty will be Rs. 50,000.

·         Surcharge at 33% of income tax  that is 33% of Rs. 1.5 lakh will be Rs. 49,500,

·         Total income tax & penalty payable: Rs. 2,49,500
And above that 25% of undisclosed income in a Deposit Scheme  that is Rs. 1.25 lakh will be locked in for 4 (four) years without accruing any interest.
What is Penalty for those who continue to hold Undisclosed  Income ?

The people who continue to hold undisclosed cash and if they caught
·         Flat 60% tax plus Surcharge of 25% of tax amount, as per the amended Income Tax law. Tax Under Section 115BBE
·         Besides above charges, if assessing officer feels then he can impose additional 10% penalty to the 75% tax. For PENALTY under Section 271AAC
·         Penalty for search/seizure cases : Penalty (271AAB)

·         Penalty for under-reporting on income is flat 50% tax and 200% tax on misreporting. And are no changes to them.
How does tax on Undisclosed income compare to if one does not declare the Income and is caught?
For Tax Under Section 115BBE: Flat rate of tax at 60% + surcharge at 25% of tax (that is 15% of such income) + cess at 3% of tax & surcharge. So total incidence of tax is 77.25% approx. (No expense, deductions, set-off is allowed)

For Example: If Rs. 5 lakh is the unexplained credit, investment, cash and other assets, 60% tax is Rs. 3 lakh
·          Surcharge at 25% of tax (that is 15% of such income) that is Rs. 75,000
·         Plus cess at 3% of income  tax & surcharge Rs. 11,250

·         Which is equal to Rs. 3,86,250 lakh  that is 77.25% of unexplained credit, investment, cash and other assets
For PENALTY (Section 271AAC) 

If Assessing Officer determines income referred to in section 115BBE, penalty at 10% of tax payable in addition to tax (including surcharge) of 77.25%.

Example of undisclosed income of  Rs. 5 lakh : In addition to Rs. 3.86.250 lakh, Rs. 30,000 is to be paid.
Total tax plus penalty: Rs. 4,16,250. This comes to 83.25% of the total unaccounted  income disclosed

Penalty for search/seizure cases : Penalty (271AAB)

For Larger Image Click On Image

Example: Say, income undisclosed and thus seized or searched is Rs. 5 lakh.
(i) 30% of income, if admitted, returned and taxes are paid 30% of Rs. 5 lakh that is Rs. 1.5 lakh
(ii) 60% of income in any other case 60% of Rs. 5 lakh  that is Rs. 3 lakh
Where will the money for Pradhan Mantri Garib Kalyan Yojna be used
This locked into the Pradhan Mantri Garib Kalyan Yojna will be used for the Government projects of irrigation, housing, toilets, infrastructure, primary education, primary health and livelihood in order to spread justice and equality.



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