Rs 10 Lakh for Just 45 Paise: How Train Travel Insurance Changed a Family’s Fate
Consumer Commission Awards Compensation After Tragic Train Accident
Case Highlights Importance of Opting for IRCTC’s Low-Cost Travel Insurance
By Legal Reporter
New Delhi: February 15, 2026:
A small decision made during the booking of a train ticket changed the destiny of a family in Madhya Pradesh. By opting for IRCTC’s optional travel insurance at just 45 paise, a passenger’s family received ₹10 lakh compensation after a tragic train accident. The case, recently adjudicated by the Bhopal Consumer Commission, has become a powerful reminder of why passengers should never skip this step while booking tickets online.
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The Case in Detail
- The passenger, Ravi Kumar Sharma, had opted for the 45 paise travel insurance while booking his train ticket.
- Tragically, he died in a train accident.
- His wife filed a claim under the insurance policy but faced delays and hurdles.
- After pursuing the matter legally, the Bhopal Consumer Commission directed the insurer to pay ₹10 lakh compensation plus interest and costs.
- The ruling highlighted the binding nature of insurance contracts and the responsibility of insurers to honour claims.
IRCTC’s Travel Insurance Scheme
Introduced in 2016, IRCTC’s travel insurance scheme offers passengers coverage at a nominal premium.
- Premium: 45 paise per passenger.
- Coverage: Up to ₹10 lakh in case of death or permanent disability.
- Hospitalization: Medical expenses are also covered in certain cases.
- Optional: Passengers must tick the insurance option while booking tickets online.
With over 50 crore e-tickets booked annually, this scheme has the potential to provide financial security to millions of families.
Why This Case Matters
- Awareness: Many passengers skip the insurance option, unaware of its benefits.
- Consumer Rights: The ruling reinforces that insurers must honour valid claims.
- Financial Security: For families, the payout can be life-changing in times of tragedy.
- Policy Impact: The case may encourage IRCTC and insurers to improve claim processing.
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Expert Opinions
- Consumer Advocates: Stress that passengers should always opt for insurance, given the low cost and high coverage.
- Legal Experts: Note that consumer commissions play a vital role in enforcing accountability.
- Insurance Analysts: Suggest that awareness campaigns are needed to increase uptake of travel insurance.
Broader Context
India witnesses thousands of train accidents and mishaps annually. While safety measures are improving, risks remain.
- Travel insurance provides a financial cushion against unforeseen tragedies.
- Awareness remains low, with many passengers unaware of the option.
- The government and IRCTC have been urged to promote the scheme more aggressively.
Conclusion
The story of Ravi Kumar Sharma’s family is a powerful example of how a small decision—opting for 45 paise travel insurance—can make a huge difference. The ₹10 lakh compensation awarded by the consumer commission not only provided financial relief but also highlighted the importance of consumer rights and insurance accountability. As millions of Indians continue to travel by train, this case serves as a reminder: never skip the insurance option while booking tickets.
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