Amongst major announcements made by the Union Railway Minister Suresh Prabhu in his budget speech was rail travel insurance for passengers. He said the government is working with the insurers on the issue.
Prabhu cited safety concerns and said there is a need to minimise financial losses to passengers from untoward accidents, Prabhu said in his speech that the government is working to provide an optional travel insurance at the time of booking.
According to reports, over 330 people have died while travelling in trains in India in the last 4 years. Insurance can help address the financial risk associated with travelling in the trains by offering death due to accident, cashless treatment for accidental injuries among others. The move will also help in increasing the insurance penetration in the country.
But whether the move will actually help in increasing the insurance penetration in the country is yet ot be found out. According to reports, only 2 percent of domestic air travelers actually opt for travel insurance and this could provide an indicator if the railway travel insurance will be accepted in a major way.
