Last year, ICICI Lombard had bagged the offer, battling five other private players.
This year's tenders will be opened on September 1, sources in the Railway Ministry said, adding that invitations have been sent to about 20 companies this time.
The insurance cover will be from September 20 this year to September 19 next year.
The passenger insurance scheme of Indian Railways covers railway passengers against death or injury resulting from rail accidents or untoward incidents as per the Railway Act of 1989.
The Railways began inviting private parties to provide insurance cover about three years back in keeping with its mandate.
At present, compensation payable in case of death is Rs 4 lakh and in case of injury Rs 32,000 to Rs 4 lakh depending on the nature of injury.
The scheme will extend to Indian Railways, Metro Railway (Kolkata) and Konkan Railway Corporation Limited.
Railway passengers holding a valid ticket, railway pass, platform ticket and railway men on duty will be covered under the scheme.
Besides, children below five years of age travelling with bonafide ticket holder, pass holders, platform ticket holders in waiting rooms, cloak rooms, booking offices and railway platforms who become victims of untoward incidents will also be covered.