Passengers booking confirmed or RAC e-tickets through Indian Railways can opt for a low-cost Optional Travel Insurance Scheme by paying just 45 paise per journey, inclusive of all taxes, Railway Minister Ashwini Vaishnaw announced in the Lok Sabha.

The scheme provides insurance coverage during the train journey, with policy details and claim settlements managed entirely by the insurance company. Over the last five years, 333 claims have been settled, with ₹27.22 crore paid to affected passengers and their families. This initiative aims to make travel safer, affordable, and seamless for millions of railway travellers.

Affordable Travel Protection Made Easy and Accessible

The Optional Travel Insurance Scheme, known as OTIS, is designed exclusively for passengers who book confirmed and RAC tickets online through the IRCTC portal or app. For a minimal premium of 45 paise per trip (which includes a base premium of ₹0.38 plus applicable GST), passengers receive coverage that begins when boarding the train and lasts until disembarking.

Opting into the scheme is as simple as ticking a checkbox during ticket booking, with no extra paperwork or separate application required. Policy information, including nomination instructions, is then sent directly to the passenger’s registered mobile number and email from the insurance provider, ensuring transparency and ease of access.

Comprehensive Coverage for Peace of Mind

The insurance covers multiple travel-related risks, including accidental death, permanent total disability, and hospitalization expenses due to injuries sustained during the journey. The scheme ensures that passengers, particularly those travelling long distances or in challenging conditions, have a financial safety net.

As the policy and claims are handled directly by the insurance company, passengers can engage with the insurer to file claims without involving the Railways, expediting the settlement process. This separation streamlines procedures and reduces delays, enhancing passenger confidence in the programme.

Historical Context and Government’s Digital Inclusion Drive

Introduced in 2016, OTIS reflects the government’s broader objective to integrate digital services with passenger safety and financial inclusion. India’s vast railway network serves millions daily, many of whom lack access to conventional insurance products.

By embedding insurance purchase within the ticket booking experience, Indian Railways facilitates effortless adoption of protective financial products. The affordability of the scheme, enabled by a nominal premium, was consciously designed to encourage widespread use, especially benefiting lower-income passengers and first-time insurance users who might otherwise remain uninsured during travel.

Usage Statistics and Impact So Far

Since its inception, the scheme has settled 333 claims, disbursing ₹27.22 crore to passengers or their beneficiaries. The figures highlight its operational effectiveness and the real-world need for travel insurance among railway passengers.

Railway Minister Ashwini Vaishnaw highlighted these achievements in his parliamentary reply, reinforcing the commitment to passenger welfare through affordable, technology-integrated solutions.

Seamless Integration and User-Friendly Experience

OTIS’s integration into the IRCTC ticketing system means passengers do not have to go through multiple platforms or complicated procedures to protect themselves. The opt-in/opt-out option is clearly presented during the booking process.

Once confirmed, instant communication from the insurer ensures passengers are fully informed of their coverage and claim procedures. This user-centric design marks a step forward in digital public service delivery, leveraging India’s rapidly expanding internet and smartphone penetration.

The Logical Indian’s Perspective

The Logical Indian applauds this innovative approach that integrates financial security into everyday travel decisions, potentially protecting millions from unforeseen risks at minimal cost. However, the scheme’s success ultimately depends on widespread awareness and understanding among passengers.

Many travellers remain unaware of OTIS or its benefits, reducing potential uptake. We urge government agencies and Indian Railways to launch sustained awareness campaigns and educational outreach to promote this safety net effectively.