In a move aimed at protecting passengers from marginalised sections of society, the Supreme Court earlier this month ordered the Railway Board to extend the insurance facility to offline or counter tickets. Currently, the travel insurance facility is available on an optional basis and only for tickets booked online.On October 6, the court told the railways that the service should be implemented by October 27. The order came on a plea filed in the wake of the June 2023 train accident in Odisha’s Balasore that killed 296 people. The plea sought a commission of inquiry to probe the crash.Coming down heavily on the Railway Board, the top court said, “We make it clear that on the next date of listing, if the Court finds that there has been no substantial progress on the ground as compared to the position obtaining today, the Court may have to consider whether the Railway Board, as presently constituted, is fit to be permitted to continue in office.”What is the status of insurance in the Indian Railways? Who is eligible, and how much compensation can one receive in the event of an accident? We explain.Train passengers must receive compensation from travel insurance in the wake of train accidents and untoward incidents, as defined in the Railways Act of 1989. This is over and above the railways’ compensation liability for death or injury of passengers in accidents.Under the existing rules, the Indian Railways offers optional travel insurance for e-ticket passengers. The claim and liabilities fall between the passengers and insurance companies. Railways only links to insurance companies through its website to provide insurance cover for the passengers.Explained | Indian Railways’ finances are under strain. Here is how a Supreme Court order could worsen itAccording to IRCTC, the scheme applies only to Indian citizens, and foreign nationals are ineligible for travel insurance coverage. For Indians, the travel insurance facility is provided only for confirmed, partly confirmed, and RAC (Reservation Against Cancellation) tickets at the time of booking only. This means that waiting-listed passengers, who are allowed to travel only based on a counter-purchased ticket, are not covered under the scheme.Story continues below this adThe insurance premium per passenger is 45 paise, inclusive of taxes, as fixed on February 17, 2024. The scheme covers death, permanent total disability, partial disability, and hospitalisation expenses for injury and transportation of mortal remains following rail accidents or untoward incidents. The sum insured under the insurance scheme ranges from Rs 2 lakh to Rs 10 lakh, based on the severity.How does this exist alongside online ticket purchases?With the push for digitisation in the Indian Railways, counter ticket bookings have declined sharply in recent years. Currently, over 87% of all reserved tickets are booked online.However, passengers who continue to rely on offline bookings are largely from the lowest strata of society and remote areas, as recognised by the Supreme Court as well. That is why an intervention to ensure their safety matters. “Court has granted sufficient time to the authorities to devise a mechanism for extending such coverage to persons belonging to the lowest strata of society, who, in most cases, purchase their tickets at the railway reservation counters while undertaking journeys by train,” said the top court.Apart from counter ticket passengers, second class or general class passengers that comprise the majority of those travelling on trains are also not covered under the existing insurance policy. Even for the reserved classes (SL, 1AC, 2AC, 3AC), the insurance scheme is not available for passenger trains and suburban trains.Story continues below this adTravel insurance is also not applicable for children under five years, for whom a ticket has to be booked without a berth or seat. It is applicable for children between 5-11 years, for whom the ticket can be booked with or without a berth.When any category of passenger opts for insurance, the claim and the liability shall be between the insured and the insurance company.