Rail Budget 2016: Railway Minister Suresh Prabhu has said to minimise financial loss to passengers due to untoward incidents, the Railways will be working with insurance companies to offer optional travel insurance at the time of booking.
The proposed travel insurance for passengers announced by Railway Minister Suresh Prabhu in the Rail budget is expected to be priced reasonably to keep it within the reach of the common passenger, feel insurance experts.
“We feel that the insurance cover will be priced affordably and will be consistent with what consumers are paying for Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana, given that this plan would only extend coverage for the duration of a single trip,” says Yashish Dahiya, CEO and co-founder, Policybazaar.com.
Railway Minister Suresh Prabhu during his rail budget speech on Thursday has said that to minimise financial loss to passengers due to untoward incidents, the Railways will be working with insurance companies to offer optional travel insurance for rail journeys at the time of booking.
Dahiya feels it would have been ideal if the insurance was packaged within the ticket price itself. “Ideally, it would have been more beneficial to package travel insurance along with the overall ticket pricing, as opposed to keeping it optional. Having said that, this move would definitely bring travel insurance into limelight and encourage more people to buy it,” Dahiya said.
Krishnamoorthy Rao, MD & CEO of Future Generali India Insurance, has welcomed the move announced by the Railway Minister Suresh Prabhu. “This is a good initiative as it increases insurance penetration and gives some financial protection to passengers against unfortunate circumstances while travelloing,” Rao said.