After passenger cover, railways plans baggage insurance

After successfully rolling out insurance for passengers who book tickets online, the Indian Railways is planning to introduce theft insurance. Under the proposed scheme, travellers can get a cover for all their baggage, electronic items and other valuables.

The scheme would cover incidents like robbery and dacoity. Indian Railway Catering and Tourism Corporation (IRCTC) has sought insurance companies' views on the issue.

The existing system doesn't provide any provision for compensation in case of theft during a rail journey. According to the rules, a passenger can approach the train conductor, coach attendants, guards or escorts, in case of a robbery or dacoity. In such cases, railways officials normally help passengers file a first information report (FIR) with the police station concerned. However, the stolen goods are rarely recovered. And to claim normal theft insurance, passengers need a "non-traceable certificate" from police, which takes at least three months.

"IRCTC has asked us to look into theft insurance possibilities and submit our views. Their idea is to provide cover for all items, including laptops, mobile phones and other valuables," said a top executive of a Mumbai-based insurer.

The initiative comes on the back of the passenger insurance scheme introduced by the railways on September 1, which became an instant hit among online ticket buyers. Till now, the scheme has attracted over 6 million buyers with about 330,000 passengers choosing it every day.