Why the Supreme Court Stepped In

The order arose from long-running proceedings on railway safety after the collision near Balasore in Odisha in June 2023, one of India’s deadliest train accidents, which killed nearly 300 people. Business Today reported that the bench expressed concern about the lack of progress despite earlier assurances from authorities, and that the same proceedings also cover track fencing, foot overbridges and the rollout of the Kavach automatic train-protection system.

The court’s reasoning on insurance is about fairness. A passenger who books online can buy cover for 45 paise. A passenger who pays cash at a station, often someone older, poorer or less comfortable with smartphones, cannot. The court directed coverage for “all tickets sold over the counter at railway stations,” putting offline bookings on a par with online ones. It gave the Railway Board two weeks and made it directly responsible if the order is not carried out.

The numbers explain why this was overlooked for so long. Counter sales have shrunk steadily. In July 2026, 89.84% of reserved tickets were booked online, the Free Press Journal reported, citing railway data. But a small share of a very large system is still a lot of people, and they are the passengers least likely to have any other insurance.

What the 45-Paise Policy Actually Pays

The online scheme is a personal accident cover arranged through IRCTC with a general insurer, chosen when booking. It pays fixed amounts for injury or death in a train accident or an “untoward incident” during the journey. The amounts below are maximums. Actual payouts depend on the type of injury and the policy terms, and a claim is paid only if the incident falls within the policy.

To put the price in perspective: for every ₹1 of premium, the maximum death benefit is ₹22.2 lakh. A family of four pays ₹1.80 per journey. Insurance is rarely this cheap because the risk to any single passenger is very small, and the policy is sold in enormous volumes.

What “untoward incident” means

Under the Railways Act, an untoward incident covers events such as a terrorist act, violent attack, robbery or dacoity, rioting, shoot-out or arson in a train or station area, and a passenger accidentally falling from a train. This matters because many railway deaths and injuries are not collisions or derailments. A passenger who falls from a crowded door may be covered; a person hit while crossing tracks is not.

Who Is Covered Now, and Who Will Be From 27 October

The order closes the biggest gap, but not every one. The table below combines the existing online rules, as reported, with what the court has directed. Where something has not been officially clarified, we say so rather than guess.

The rows for online RAC and waitlisted tickets reflect how the option has generally been offered at booking; check the IRCTC booking page for your ticket. The unreserved category is the big question. The order refers to “all tickets sold over the counter,” and general tickets are sold over counters too, but most reports so far describe the change in terms of reservation counters. Unreserved passengers travel in the most crowded coaches and are the most exposed to falls from doors. If they are included, the reach of the order is far larger than the 10% of reserved tickets sold offline.

Does this insurance replace railway compensation?

No. Travel insurance is separate from the statutory compensation Indian Railways must pay for accidents and untoward incidents under the Railways Act, which is claimed through the Railway Claims Tribunal. That compensation is ₹8 lakh for death, under rules last revised in 2017, Factly reported, with injury amounts from ₹64,000 to ₹8 lakh. Families can pursue both.

Ex gratia relief, the immediate cash the Railways pays the injured and the families of those killed, is a third, separate stream. The Railway Board revised these amounts upward in September 2023, the first revision since 2012 and 2013, PTI reported. Ex gratia is paid quickly and does not depend on having bought insurance.

From 92 Paise to 45 Paise: A Short History of Rail Insurance

IRCTC introduced optional travel insurance for e-ticket passengers in 2016, at a premium of 92 paise. The premium was later cut to 35 paise in 2021, according to Factly, and now stands at 45 paise per passenger including taxes. Throughout, it has been an online-only product, because the booking system collected the premium and passenger details electronically, and counters had no comparable process.

• 2016Optional insurance launched for e-tickets at 92 paise
• 2021Premium cut to 35 paise per passenger
• Jun 2023Odisha collision kills nearly 300 people
• Sep 2023Railway ex gratia relief revised upward
• Jul 202689.84% of reserved tickets booked online
• 6 Oct 2026Supreme Court orders cover for counter tickets
• 27 Oct 2026Deadline: counter tickets to carry insurance
• 16 Nov 2026Next hearing; compliance likely reviewed

The practical challenge for Railways is collecting nominee details. Online, passengers typically receive an SMS and email from the insurer with a link to fill in nominee details. At a counter, passengers fill in a paper requisition form, and there is no standard way to record a nominee or send a policy link. How Railways solves this in under three weeks will shape how easy counter claims are.

How to Claim, Step by Step

The claim process for counter tickets has not been announced. For the existing online scheme, the steps reported by Aaj Tak are below. Expect the counter process to be similar once published.

• Day 0 to 7Inform the insurerUse the details in the policy SMS or email, or the IRCTC booking
• Week 1 to 4Get the railway reportAccident or incident report from railway authorities
• Month 1 to 3Collect documentsMedical, police, ID and bank papers, by claim type
• By month 4Submit the claimWritten claim within 4 months of the incident
• After filingFollow upAnswer queries; keep copies and the claim receipt

The time ranges in the first three steps are practical suggestions to stay well inside the four-month limit, not official service levels. The only firm deadline reported is four months from the incident.

Documents you will need, by type of claim

If no nominee was registered, the insurer may ask for proof of legal heirship or a succession certificate, which can take months to obtain. This is the single biggest cause of delay in death claims, and the easiest to prevent: fill in the nominee link the insurer sends when you book.

When the Policy Will Not Pay

Because the premium is so low, the policy is narrow. It covers accidents and untoward incidents connected to the train journey, not everything that can happen on a trip. Aaj Tak listed these exclusions under the existing scheme.

• Self-inflicted injury, suicide or attempted suicide
• Incidents linked to drugs or intoxication
• Injuries while crossing railway tracks
• Certain risky activities by the passenger
• Incidents outside the policy period
• Not boarding the train, or tickets that cannot be verified

These exclusions follow the same logic as the Railways Act compensation rules, which also exclude self-inflicted injuries and injuries from a passenger’s own unlawful act. Illness during the journey, lost luggage and missed trains are not covered either. For those, a separate travel or health policy is needed.

What Passengers Should Do Before and After 27 October

If you book online, the simplest step is to tick the insurance box on every booking. At 45 paise, there is no financial case for skipping it. Then, when the insurer’s SMS or email arrives, fill in your nominee details. Many passengers never open that link, which is what turns a straightforward claim into a long legal process.

If you buy tickets at a counter, ask the booking clerk from 27 October whether insurance has been applied, and look for it on the printed ticket. Since the counter process has not been published, keep the original ticket and a photo of it. In the event of a claim, the ticket is your proof of travel and, likely, of cover.

• Tick the 45-paise box on every online booking
• Fill in nominee details within 1 to 2 days of booking
• Keep the ticket and PNR for at least 4 months
• From 27 Oct, ask at the counter whether cover is applied
• Note railway helpline numbers before travel
• Inform the insurer within days of any incident