Invest in Credit Risk Mutual Fund or not?

In the wake of the Odisha train crash tragedy that claimed 288 lives and injured over 1,000, insurance watchdog IRDAI has ordered all insurance companies to not wait for claims to be filed by aggrieved, but rather take charge and compensate for all such cases at the earliest.

Last week, the Coromandel Express, the Howrah superfast express and a goods train were involved in a fatal collision near the Bahanaga Bazar station, Odisha. The Coromandel express hit a stationary goods train, thereby derailing many coaches from the track. The incoming Howrah superfast ran into these derailed coaches, further exacerbating the death toll. Many experts are flagging the incident as a result of a signaling error and operational failures.

A 2022 CAG report had earlier identified rising cases of derailments in Indian Railways. It had highlighted track maintenance shortfalls ranging between 30-100% in the 1,129 inquiry reports it had audited between 2017-2021. Out of the 217 consequential train accidents that took place in this period, 163 were cases of derailments.

But for 35 paise, Indian railways offers an optional life insurance up to Rs 10 lakh, which can act as a financial safeguard in such incidents. This can be chosen while booking your ticket online. IRCTC is liable to pay you in case you or your loved ones lose their lives or are involved in an accident. Here is a breakdown of the amount payable to the insured in various instances.

Documents needed for claim

A claim needs to be filed in the event of either death, disablement and hospitalization. These are some common documents that need to be presented:

Cancelled cheque, NEFT mandate, photo identity proof, personal accident claim form filled by insured/nominee or legal heir, official railway authority report confirming the accident/death of individual.

In case of death claims, a death certificate and if there is no nominee mentioned, a succession certificate is needed. For filing a disablement claim:

Disability certificate

Attested doctor’s report, indicating the % of disability

Photo proofs before and after the accident causing the disability

Copy of FIR

Original X-rays, medical bills, doctors prescription

In case you want to file a claim for getting hospitalization expenses:

Original bills, doctor’s prescription

All diagnostic tests and discharge summary

To ease the claims process, LIC has waived off the necessity for providing death certificates as a compulsory document. In its place, any list of dead published by the authorities will be taken as proof.