New railway rule comes into effect today; this facility will now be available for counter tickets as well
Indian Railways New Rule 2026: Passengers purchasing reserved train tickets from railway reservation counters have an important update. From October 27, 2026, travellers who wish to purchase optional travel insurance with their counter tickets will need to use a digital payment method for the insurance premium.
According to a report published by Aaj Tak, the optional insurance costs just 45 paise per passenger and offers accident-related coverage of up to ₹10 lakh under specified conditions.
The change is particularly relevant to passengers who usually buy tickets at railway counters and pay in cash.
However, the new requirement concerns payment for the optional insurance facility. It does not mean that cash payments for railway tickets have been completely discontinued.
What Is the New Railway Counter Ticket Rule?
Under the reported arrangement, passengers booking reserved tickets at railway reservation counters can opt for travel insurance by paying a small additional premium.
The insurance premium is ₹0.45 per passenger, but it must be paid digitally rather than in cash.
The objective is to extend access to the optional insurance facility while maintaining a digital record of premium payments.
Travellers should distinguish between the payment method for the insurance premium and the accepted payment methods for the railway ticket itself.
Why Has Indian Railways Introduced This Facility?
The change follows a Supreme Court direction issued on October 6, 2026, asking Indian Railways to extend travel insurance protection to passengers purchasing tickets at railway counters.
Previously, the optional insurance facility was primarily available to passengers booking reserved tickets through IRCTC's online platforms.
The Railway Board subsequently instructed railway zones to prepare Passenger Reservation System (PRS) counters for the expanded facility by October 27.
Why Is Digital Payment Mandatory?
The insurance premium is just 45 paise per passenger, including taxes.
Because coins of denominations such as 5, 10, 20 and 25 paise are no longer legal tender, collecting the exact premium in cash is impractical.
Accordingly, passengers choosing insurance at a reservation counter must pay the entire ticket fare and insurance premium digitally.
Available methods may include UPI, debit cards, credit cards or supported QR-code payments.
Passengers who do not choose insurance can continue purchasing counter tickets using otherwise accepted payment methods.
How Much Insurance Coverage Will Passengers Receive?
The Optional Travel Insurance Scheme provides financial protection for specified railway accidents and covered incidents.
| Insurance Benefit |
Maximum Coverage |
|---|---|
| Accidental death |
₹10 lakh |
| Permanent total disability |
₹10 lakh |
| Permanent partial disability |
₹7.5 lakh |
| Hospitalisation expenses for covered injuries |
₹2 lakh |
| Transportation of mortal remains |
₹10,000 |
The actual claim amount depends on the nature of the incident, eligibility and policy conditions.
Who Can Get the 45-Paise Railway Travel Insurance?
The optional facility applies to eligible reserved tickets purchased through railway PRS counters.
According to the reported Railway Board instructions, the following reservation categories qualify:
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Confirmed (CNF) tickets
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Reservation Against Cancellation (RAC) tickets
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Partially confirmed (PartCNF) tickets
Unreserved and general tickets are not included in this particular optional insurance facility. Children travelling without a separate reserved seat or berth may also be excluded under the applicable rules.
How to Buy Travel Insurance at a Railway Reservation Counter
Passengers can follow these steps:
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Visit an authorised railway reservation counter.
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Provide the required journey and passenger information.
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Inform the booking clerk that you want optional travel insurance.
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Provide an accurate mobile number for insurance communication.
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Pay the ticket fare and applicable insurance premium digitally.
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Collect your reserved ticket and check the booking details.
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Review the insurance information sent to your registered mobile number and complete any required nominee details.
Passengers should keep their booking information and insurance communication safely for future reference.
How Much Will Insurance Cost for a Family?
The premium is charged per insured passenger.
| Number of Passengers |
Total Insurance Premium |
|---|---|
| 1 |
₹0.45 |
| 2 |
₹0.90 |
| 3 |
₹1.35 |
| 4 |
₹1.80 |
| 5 |
₹2.25 |
| 6 |
₹2.70 |
For example, a family of four purchasing eligible reserved tickets can opt for insurance at a combined premium of ₹1.80.
What Happens if a Passenger Cancels the Ticket?
Passengers should also understand the cancellation conditions.
According to railway officials cited in reports, 9 paise is deducted from the 45-paise insurance premium when an insured ticket is cancelled.
This leaves a potential premium refund of 36 paise per passenger, subject to the applicable cancellation procedure.
Normal railway ticket cancellation charges may apply separately.
Is Travel Insurance Now Compulsory for Every Train Passenger?
No. The insurance remains optional under the Railway Board's implementation instructions.
The Supreme Court directed Railways to make insurance coverage available for counter-ticket passengers, but travellers must still choose the optional insurance facility and meet its payment and eligibility conditions.
Passengers who do not opt for the scheme should not assume they have purchased this additional insurance cover.
Important Advice for Railway Passengers
Passengers planning to purchase reserved tickets at railway counters should carry a suitable digital payment option if they want insurance.
They should provide their correct mobile number, review the policy details and check the applicable exclusions before relying on the cover.
For railway booking information, passengers can visit the official IRCTC website or Indian Railways website.
Conclusion
Indian Railways has expanded its optional travel insurance scheme to eligible reserved tickets purchased at physical railway reservation counters from October 27, 2026.
For just 45 paise per passenger, the scheme offers accident-related financial protection of up to ₹10 lakh, subject to policy terms.
The key change is that passengers choosing insurance must pay the entire ticket fare and premium digitally. Cash payment is not permitted for an insured counter-ticket transaction.
The facility gives passengers booking offline an opportunity to access insurance protection previously available through online reservations.