Indian Railway Passengers Must Pay Digitally for 45-Paise Travel Insurance at Counters from October 27, 2026

Railway passengers buying reserved tickets at booking counters will have to pay digitally if they choose the optional travel insurance cover from October 27, 2026.  

According to news reports, the Railway Board has directed zonal railways to collect the 45-paise premium along with the ticket fare through digital payment methods. 

Digital Payments for Insurance Premium 

The Railway Board issued the direction in a letter dated October 24, asking zonal railways to prepare their Passenger Reservation System (PRS) counters for the change. This follows a Supreme Court order dated October 6, 2026. 

The premium cannot be collected in cash because 5, 10, 20 and 25-paise coins are no longer legal tender. The insurance scheme itself remains optional. Passengers who do not want the cover can book tickets without selecting it. 

The Centre for Railway Information Systems (CRIS), which manages railway reservation software, has completed the required changes to the system.  

What the Insurance Covers 

The Optional Travel Insurance Scheme charges 45 paise per passenger, inclusive of taxes. The premium has been in effect since February 17, 2024. 

The cover provides ₹10 lakh in the event of death or permanent total disability and ₹7.5 lakh for permanent partial disability. It also covers hospitalisation expenses for injuries up to ₹2 lakh and ₹10,000 towards transporting mortal remains. 

Passengers can opt for insurance when booking confirmed (CNF), Reservation Against Cancellation (RAC) or partially confirmed (PartCNF) tickets. 

The scheme also covers passengers travelling under one Passenger Name Record (PNR) despite differences in reservation status, provided they select the insurance option.  

For example, if four people are booked together, with one confirmed berth and three waitlisted passengers, all four can receive cover at 45 paise per person. 

Deduction on Cancellation 

Passengers cancelling their tickets will lose 9 paise from the insurance premium, in addition to the applicable ticket cancellation charges. 

The Railway Board has also told reservation staff to record passengers' mobile numbers and other required details correctly. These details will be sent to the insurer to issue the policy. 

Read More: India Extends Anti-Dumping Duty on Chinese Titanium Dioxide for 5 Years! 

Conclusion  

The new rule applies to passengers choosing the optional insurance cover at reservation counters. The premium will be collected digitally along with the ticket fare. 

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