Indian Railways Extends Optional Travel Insurance to Counter Tickets with Mandatory Digital Payment

Indian Railways is extending its optional travel insurance scheme to passengers buying tickets at physical reservation counters, effective October 27, 2026. Following a Supreme Court order dated October 6, the facility bridges the gap between online bookers and physical counter buyers.

Because fractional coins of 5, 10, 20, and 25 paise are no longer legal tender, the 45-paise insurance premium cannot be collected in cash. Consequently, passengers opting for the insurance must pay the total amount, including the ticket fare and the premium, through digital means only. The Railway Board issued a directive to all zonal railways instructing staff to ensure that any passenger opting for insurance completes the payment digitally.

The Centre for Railway Information Systems (CRIS), in coordination with the Indian Railway Catering and Tourism Corporation (IRCTC), handled the required software modifications and testing to integrate the system at Passenger Reservation System (PRS) counters. CRIS officials confirmed that the implementation goes live as scheduled.

Under the terms of the Optional Travel Insurance Scheme (OTIS), the insurance coverage provides up to Rs 10 lakh in the event of death or permanent total disability, Rs 7.5 lakh for permanent partial disability, Rs 2 lakh for hospitalization expenses, and Rs 10,000 for the transportation of mortal remains. The premium remains fixed at 45 paise per passenger, inclusive of all taxes.

The facility is available exclusively for confirmed (CNF), Reservation Against Cancellation (RAC), and partially confirmed (PartCNF) tickets at the time of booking. For instance, if multiple passengers travel under a single PNR with a mix of confirmed and waitlisted berths, the insurance applies according to the defined parameters. In the event of a ticket cancellation, 9 paise will be deducted from the 45-paise premium alongside standard cancellation charges.

Reservation staff have been instructed to accurately capture mandatory mobile numbers and passenger details during booking. This data is transmitted to the insurance company to facilitate policy issuance.

"The expansion of travel insurance to counter-ticket buyers reflects a necessary digital integration for public infrastructure. By mandating digital payments for fractional-cent premiums like the 45-paise charge, Indian Railways effectively addresses the challenge of discontinued fractional coins while streamlining financial transactions. For technology service providers and platforms operating in the public sector ecosystem, this move underscores the growing importance of seamless software integration and digital compliance at grassroots ticketing points." — Dr. Shishir Gupta, Founder & CEO, StartupLanes