Train Ticket Insurance From October 27: Coverage and Compensation Explained

The Supreme Court has directed Indian Railways to provide insurance cover on tickets bought at railway counters from October 27, 2026. Until now, this protection applied to e-tickets. The order brings offline passengers under the same safety net.

How Much Compensation Does Railway Ticket Insurance Offer? 

The existing e-ticket travel insurance policy offers these benefits:

• Up to Rs 10 lakh for accidental death or permanent total disability
• Up to Rs 7.5 lakh for permanent partial disability
• Up to Rs 2 lakh for hospitalisation costs after an injury

What Incidents Are Excluded From Railway Ticket Insurance?

The details of excluded incidents have not been shared yet. The final coverage for counter tickets will depend on the policy terms of the new arrangement, so students should watch for the official notification.

How Much Compensation Can Passengers and Their Families Receive After a Train Accident?

If a passenger dies in an accident, the family can receive up to Rs 10 lakh. An additional Rs 10,000 is given to transport the mortal remains. An injured passenger can claim hospital expenses up to Rs 2 lakh. A passenger left permanently disabled can get Rs 7.5 lakh to Rs 10 lakh, depending on the severity of the disability.

Is Railway Ticket Insurance Mandatory for All Tickets Booked at Railway Counters?

Yes. The bench of Justices Ahsanuddin Amanullah and R Mahadevan said all counter tickets at every railway station must be insured in the same way as online tickets. The direction must be followed strictly. If it is not, the Railway Board will be held directly responsible. The court will hear the case again on November 16.

Why Supreme Court Makes Insurance Mandatory for All Train Tickets?

The case began with a plea filed after the June 2023 Odisha train accident. The petitioner sought an inquiry and blamed the crash on the lack of the Kavach safety system. The court later widened the case to cover foot overbridges, track fencing and insurance for counter tickets.

On May 11, the Centre told the court that a decision on insurance for offline tickets had been taken and the details were being worked out. The court found no progress since then. It also noted that many economically weaker passengers buy tickets at counters, and they were left without cover.

On October 6, the court expressed strong displeasure at the Railway Ministry’s conduct. It observed that the Railways’ assurances had stayed mostly on paper and that the money set aside for safety had not been fully used. It gave the Railways two weeks to start offline ticket insurance.