The Supreme Court has
directed Indian Railways to extend travel insurance to passengers purchasing
tickets at railway station counters from October 27, 2026, making the Railway
Board directly accountable for implementing the order.
A bench of Justices Ahsanuddin Amanullah and R Mahadevan issued
the direction on October 6 while examining a plea filed after the June 2023
Odisha train accident. The petition sought an inquiry into the crash, alleging
that the failure to implement the Kavach train protection system had
contributed to the tragedy. It also called for the safety system to be rolled
out across the railway network.
“Coming to the issue of insurance coverage, at present, only
persons purchasing tickets online are provided the benefit of insurance coverage
upon payment of a nominal additional amount. The Court has granted sufficient
time to the authorities to devise a mechanism for extending such coverage to
persons belonging to the lowest strata of society, who, in most cases, purchase
their tickets at the railway reservation counters while undertaking journeys by
train. As there has been no progress on this aspect either, we direct that
within two weeks, i.e., with effect from 27.10.2026, all tickets sold over the
counter at all railway stations shall also be covered by insurance in the same
manner as tickets purchased online. The aforesaid direction shall be
implemented mandatorily, failing which the responsibility shall be directly
upon the Railway Board,” the order said.
During the proceedings, the court widened its scrutiny to
include several passenger safety concerns, such as the construction of foot
overbridges, fencing along railway tracks and the absence of insurance coverage
for tickets bought offline.
The bench expressed dissatisfaction with the Railways' response
to its earlier directions, observing that assurances given to the court had not
translated into meaningful improvements on the ground. It also flagged the
underutilisation of budgetary allocations earmarked for passenger safety.
The court had previously
asked the Railway Board to submit details of measures taken to improve safety,
including the expansion of Kavach, construction of foot overbridges and fencing
of tracks. It directed the authorities to provide evidence of progress and
explain whether dedicated funding had been committed to these projects.
On October 6, the bench voiced strong displeasure with the
Ministry of Railways over what it described as a failure to adequately address
basic safety requirements. It initially directed the Railway Board chairman and
members to appear personally before it to explain the lack of progress, warning
that it would take a serious view if the Railways continued to offer assurances
without corresponding action.
Additional Solicitor General Vikramjeet Banerjee, appearing for
the Centre, sought two weeks to file a detailed affidavit outlining the work
undertaken over the preceding year and explaining why prescribed targets,
particularly for track fencing, had not been met. The court accepted the
request and deferred its order requiring the Railway Board's top officials to
appear.
The bench also took up the issue of insurance for passengers
buying tickets at railway counters, noting that the authorities had been given
adequate time to devise a mechanism to extend the facility to economically
disadvantaged travellers who often rely on offline bookings.
It observed that no meaningful progress had been made despite
the Centre informing the court on May 11 that a decision had been taken to
extend insurance to counter tickets and that the implementation details were
being worked out.
Directing the Railways to ensure parity between online and
offline bookings, the court said all tickets sold at railway stations must
carry insurance coverage on the same terms as tickets purchased online, with
effect from October 27.
The bench made compliance mandatory and placed direct
responsibility for any failure to implement the direction on the Railway Board.
The matter will next be heard on November 16.
Reacting to the order, Manas Kapoor, business head of travel
insurance at Policybazaar, said that making insurance mandatory for all train
travellers is a welcome step towards strengthening passenger safety and
financial protection in India.
“For
millions of Indians who rely on railways as an affordable and accessible mode
of transport, insurance at an affordable premium can provide crucial financial
support to passengers and their families in the event of unforeseen accidents,”
he said.