Online Rail Accident Insurance Scheme
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
QUESTION NO 1680
ANSWERED ON 02.01.2018
Online Rail Accident Insurance Scheme
1680 Shri Vishambhar Prasad Nishad
Ch. Sukhram Singh Yadav
Smt. Chhaya Verma
Will the Minister of FINANCE be pleased to state :-
(a) the amount collected by the companies providing accidental insurance to railway passengers under online Rail Accidents Insurance Scheme;
(b) the details of accidents related claims during this period and the amount paid to passengers or families of passengers by online Rail Accident Insurance Companies and amount of claims pending; and
(c) whether it is a fact that while Railway is going in losses but Rail Accident Insurance Companies are earning hefty profits due to the wrong policies and the profit which should have gone to Railways is going in hands of private companies; and
(d) if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(a) & (b): As per Ministry of Railways, an amount of Rs. 32.14 crores has been collected by three Insurance companies as insurance premium since inception of the scheme , i.e., from 1st September, 2016 to 30th November, 2017. The details are as follows:
As on 30.11.2017
No. of claims reported 131
Amount paid Rs. 2.47 crores
No. of claims pending 67
(c) & (d): As per Ministry of Railways, insurance product development and marketing is a specialized job which is handled by insurance companies.
As per Insurance Regulatory and Development Authority of India (IRDAI), at the time of introduction of Online Rail Accident Insurance Scheme, the premium rate was Rs 0.80 (plus taxes) per passenger. Based on Claim experience, the premium rate was reduced to Rs. 0.58 (plus taxes) with effect from 1st October 2017.
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