Indian Railways: New Digital Payment Rule for Travel Insurance
Starting October 27, Indian Railways requires digital payments for optional travel insurance at counters due to the unavailability of small coins.
Passengers booking tickets at reservation counters will notice a significant change in how they handle optional travel insurance. Starting October 27, 2026, Indian Railways has mandated that the insurance premium for travel must be paid exclusively through digital payment methods.
This new regulation applies to the 45-paise insurance premium, which can no longer be settled using cash. The decision was necessitated by the fact that coins in denominations of 5, 10, 20, and 25 paise are no longer considered legal tender, making cash transactions for such small amounts impossible at the counters.
Supreme Court Directive and Implementation
The extension of this insurance facility to counter-based ticket holders follows a Supreme Court directive issued on October 6, 2026. This mandate required the Railway Board to ensure insurance services are available to all passengers, a move prompted by the tragic Odisha train accident in June 2023.
To facilitate this transition, the Centre for Railway Information Systems (CRIS) has successfully updated the reservation software. The Railway Board has also instructed all zonal railways to implement this at the field level, directing counter staff to inform travelers about this optional service during the booking process.
Comprehensive Insurance Coverage Details
While the premium is minimal, the insurance provides substantial financial protection for passengers. The coverage includes:
- Accidental death or permanent full disability: Up to ₹10 lakh.
- Permanent partial disability: Up to ₹7.50 lakh.
- Hospitalization expenses: Up to ₹2 lakh.
- Transportation of mortal remains: Up to ₹10,000.
Eligibility and Important Exclusions
It is important for passengers to understand which tickets are eligible for this protection. The insurance covers confirmed, Reservation Against Cancellation (RAC), and partially confirmed reserved tickets. However, unreserved and general tickets are not eligible for this insurance scheme.
To ensure passengers receive their policy details, a valid mobile number must be provided during the booking process, as details will be sent via SMS.
There are several specific exclusions to keep in mind:
- Children under five years of age traveling without a separate seat or berth are excluded.
- Incidents involving track crossing are not covered.
- Claims related to self-inflicted harm are ineligible.
- Coverage is void if the passenger is traveling under the influence of alcohol.