The Railway Passenger Insurance Scheme 1994

It was introduced in the Rail Budget 1993-94 to insure passengers against any injury or loss of life
from a rail accident involving terrorist attacks, dacoities, bomb blasts, etc.
Any person holding a valid ticket or platform pass was insured this scheme under Section 124 and
123(c) of The Railways Act 1989.

The dependants of the victims could claim the compensation (as defined under Section 123 b). The
dependants include
- wife, husband, son, daughter, parents (if the victim is unmarried or minor).
- Parents, minor brother or unmarried sister, widowed sister, widowed daughter-in-law and a
minor child of a predeceased son.
- A minor child of a pre-deceased daughter.
- The paternal grand parent wholly dependent on the deceased passenger.

The insurance could be claimed by filing an application under section 124 or 124A before the bench
of Railway Claims Tribunal, having territorial jurisdiction over the place from which the passenger
purchased his pass or ticket or where location of the accident or untoward incident.

Scale of compensation:

The scale of compensation was decided looking at the intensity of the accident and untoward
incident (Compensation) Rules 1990 wherein compensation for death or 100% permanent disability
is Rs 4 lakhs. In case of injury, the minimum of Rs.32000/- and maximum of Rs.3.60 lacs.
The time limit for filing the claim was within 1 year of the accident or incident.

The Ministry of Railways entered into an agreement with three Insurance Companies through
Limited Tender, namely:
(i) Shriram General Insurance Company Ltd.
(ii) ICICI Lombard General Insurance Company Ltd.
(iii) Royal Sundaram General Insurance Co. Ltd.

However, the minister of state for railways K H Muniyappa informed the Lok Sabha that no insurance
cover had been taken after September 20, 2008 and added that the ministry had decided to
discontinue the Railway Passenger Insurance Scheme.