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Wednesday, September 16, 2009

RESTORE INSURANCE COVER OF INDIAN RAILWAY PASSENGERS

Press Release
Dt 16 Sept 2009


SIKKIM CHAMBER OF COMMERCE OPPOSES WITHDRAWL OF INSURANCE COVER FOR INDIAN RAIWAY PASSENGERS

We are surprised to learn that Indian Railways have stopped the coverage of Railway Passengers from accidents.

Currently more than 18 million passengers travel in the Indian railways on some 10700 trains. We came to understand that the insurance cover was not renewed for the period 2008-2009 which means we are traveling without insurance cover.

It saved the railways a sum of Rs.34 crores which it used to pay to Insurance Companies to cover the risk of accidents leading to injuries, deaths,etc. In the past passengers suffering accidents were entitled to receive Rs.4 lacs as claims for death and at least 32,000 for major fractures.

The reason put by the railways is that a large number of false claims comes up and it is for this reason that they want to withdraw cover for passengers.

The reason does not hold ground. If somebody puts false claims, it is the duty of the officer concerned to verify the truth, but based on this silly ground, Railways cannot and should not withdraw insurance cover for genuine passengers.

We urge Mrs Mamta Banerjee, Hon’ble Railway Minister to look into the matter with human touch and restore insurance coverage of passengers immdly.

Rs.34 crores premium amount is miniscule in the light of huge revenue that Indian Railway is earning.


S.K.Sarda
President
Sikkim Chamber of Commerce
Gangtok

Dt 16 Sept 2009

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