Insurers in race to cover rail passengers - Economic Times

KOLKATA:
ICICI Lombard, Reliance General Insurance and the four populace sector general
insurers - United Republic Of Republic Of India Insurance, New India Assurance, Asian Insurance and
National Insurance - are in the race for covering the lives of 16 million
passengers who go with the Indian Railways day-to-day on some 7,000-odd trains. The screen is against loss of life or disablement owed to develop accidents. The Railway Board had recently
invited commands from public and private sector coverage companies for a comprehensive
accident insurance policy that volition be available to all riders who go by
Indian Railways and also platform ticket holders at all stations across the
country. The coverage policy will be valid from September 2007 to August 2008. Mum's the word on the insurance premium quoted by the insurance companies in the race. While there's no official
confirmation, ICICI Langobard is learnt to have got emerged as the last bidder for
the projected cover, according to exceed fiscal circles. The exact premium
quotations are not known. Despite perennial efforts by ET to acquire an official
response, neither ICICI Langobard nor the Railways confirmed this bit. Interestingly, the four public
sector full general coverage companies have got formed a single consortium, with United Republic Of India as
lead insurer, to flip for the insurance legal tender floated by the Railways. Under Section 124 of the
Railway Act of 1989: "The Railways have to pay compensation for decease or injury
to a rider that happens inside a railroad property. Accident victims are paid
a upper limit of Rs 4 hundred thousand per individual and it is routed through the Railway Claims
Tribunal. The Railway Claims Court make up one's minds on the measure of payment which is
then paid by the insurer. "Last year, Reliance General
Insurance had bagged the business relationship which is valid for a twelvemonth and is owed to expire
this September. The concluding awarding for covering riders is yet to be made and
the Railways is yet to take a concluding decision. The proclamation likely before the
present coverage policy managed by Reliance General Insurance expires," said
Railway Board officials. An
executive at Anil Ambani-controlled Reliance General Insurance said, "The
company is in the race for bagging the coverage screen for the Indian Railways
this twelvemonth too." Nevertheless, they declined to elaborate. North American Indian Railways have started
inviting commands from private insurance companies with the purpose to cut down cost of the cover. In
2005-06, United Republic Of India and the three PSU insurance companies had offered the screen at Rs 38
crore premium. Reliance General Insurance is believed to have got quoted less than
that in 2005-06. "The accident
cover have been provided by state-owned insurers for over 15 years, with the
exception of the last three years. This year, we had command for the account, but
have not emerged as the L1 bidder," a senior military officer told ET. Officials from National
Insurance earlier said it often turns out to be loss-making proposition because
claims payment be givens to transcend insurance premium paid by the Railways.