The government has asked insurance companies to report their exposure to the triple train accident in Odisha on 2 June, in terms of coverage and claim payments towards the victims of the collision.
The Department of Financial Services (DFS) has asked the General Insurance Council, the representative body of general insurers, and Life Insurance Council, which represents life insurers, to collect the required data from their members.
The government is planning to pay claims arising from the accident through three government schemes, which are the Pradhan Mantri Suraksha Bima Yojana (PMSBY), the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJY), and the insurance scheme of the Indian Railway Catering and Tourism Corporation (IRCTC).
General insurers, as part of the government financial inclusion programme, provide some basic cover under the Pradhan Mantri Suraksha Bima Yojana (PMSBY) through banks. The coverage under the scheme is INR200,000 ($2,422) for accidental death and full disability and INR100,000 for partial disability. The premium of INR20 per annum is deducted automatically from the policyholder’s bank account.
Life insurers also through banks provide cover under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJY). Under this, the policyholder has death cover of INR200,000 due to any reason for a premium of INR436 per annum.
The IRCTC provides optional personal accident cover to the passengers of Indian Railways at a premium of INR0.35. The policy provides a coverage of INR1m in case of death or permanent disability, INR750,000 for partial disability, and INR200,000 for hospitalisation expenses for injury. The IRCTC provides the insurance coverage through non-life insurers that are selected through a bidding process. At present, the two insurers are SBI General Insurance and Liberty General Insurance.
The 2 June accident involved two passenger trains and a stationary goods train and has led to the loss of life of at least 275 people and left over 1,100 injured.
Apart from the government, insurers are working to expedite claim settlement on private insurance policies purchased by train passengers.
