Supreme Court directs Railways to extend travel insurance to counter tickets from October 27, 2026

The Supreme Court has issued important directions in the interest of the safety of millions of rail passengers. Until now, travel insurance was available only to eligible passengers who booked tickets online. Railways will now have to make the same arrangement for passengers who buy tickets at railway reservation counters. The court has directed Indian Railways to implement the change from October 27, 2026.

The court has made it clear that compliance with the order is binding on the Railways. If there is negligence, responsibility will be fixed on the Railway Board. However, it is not yet clear how much counter-ticket passengers will have to pay for the insurance, or whether a separate charge will be levied for it.

The matter came up in a hearing on rail safety before a bench of Justice Ahsanuddin Amanullah and Justice R. Mahadevan. It is linked to a petition filed after the major rail accident at Balasore in Odisha in June 2023.

During the hearing, the issue of travel insurance for passengers was also raised along with rail safety. Eligible passengers who book tickets online have the option of taking travel insurance by paying a nominal additional amount. Those buying tickets at railway station reservation counters did not have this facility. This had created a gap in insurance cover between online and counter passengers.

The court had earlier given railway officials time to remove this gap. But the progress in putting the required arrangement in place was not as expected, so the court has now set a clear deadline. Accordingly, from October 27, 2026, tickets sold at reservation counters at railway stations must also be given insurance cover, as online tickets are.

According to the court's directions, insurance cover must be made available on tickets sold at reservation counters at all railway stations in the country. The main purpose of the decision is that counter-ticket holders should get the benefit of this facility just as online bookers do. If the order is not implemented, the Railway Board will be directly responsible. The railway administration will therefore have to put the necessary procedures and arrangements in place within the stipulated time.

When reserving tickets through the IRCTC, the online ticket booking system of Indian Railways, eligible passengers have the option of taking travel insurance. According to available information, the premium has been 0.45 rupees per passenger, inclusive of taxes, since February 17, 2024. However, this is an optional choice that can be made while booking an online ticket. It is not a mandatory charge applied automatically to every ticket. Not every passenger booking online has therefore taken the insurance.

Directions have now been given to bring passengers who take tickets at counters under insurance cover as well. But it is not yet clear whether the same 0.45 rupee premium now applicable to online tickets will apply to counter tickets, or whether a separate arrangement will be made. Final details will emerge from the official guidelines to be issued by the Railways and the revised ticket reservation process.

Under the current online travel insurance scheme, cover is provided in different situations, such as the death of a passenger in a rail accident, permanent disability, or hospital treatment after injury. According to available information on the scheme, the sums are as follows: 10 lakh rupees for death in a rail accident, 10 lakh rupees for permanent total disability, 7.5 lakh rupees for permanent partial disability, 2 lakh rupees for hospital treatment expenses after injury, and 10,000 rupees for the cost of transporting the body of a deceased passenger.

The benefit of the insurance is subject to the terms of the policy concerned and the eligibility required to make a claim. The amounts above will therefore not necessarily be paid automatically in every situation. How the insurance cover will apply to tickets bought at counters, what its terms will be and what the claim process will be will become clear only after the Railways issue guidelines.

During the hearing, the Supreme Court also expressed concern over other issues related to the Railways' broader safety arrangements. These include fencing along railway tracks, building foot overbridges for pedestrians to cross, and implementing the "Kavach" safety technology used to prevent accidents. The court has also asked the railway administration to present information on how much progress has been made so far in implementing these safety measures and how much has been spent on them. This makes clear that the court is watching measures to prevent rail accidents along with travel insurance.

Passengers should note that the Supreme Court has directed that arrangements to give counter tickets travel insurance cover be implemented from October 27, 2026. However, the final rules on the premium, whether it will be optional or mandatory, and how it will be entered when buying a ticket at the counter are not yet clear. Passengers should therefore watch for official notices from the Railways.