Millions of people travel by train daily in India, making Indian Railways a vital part of life. However, accidents do happen. Whether it’s a train collision, derailment, or an unexpected mishap, passengers and their families may be entitled to financial compensation. The Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railways provide financial relief in case of injuries or deaths caused by train accidents.
In 2025, knowing your rights and understanding the compensation process is essential. This guide explains when and how passengers can receive financial help, who qualifies, and the amount they can expect.
When Does IRCTC Provide Train Accident Compensation?
Not every accident qualifies for compensation. Indian Railways follows the Railways Act, 1989, which divides incidents into two categories:
1. Train Accidents
These are large-scale incidents that directly involve a running train, such as:
Collisions – Two or more trains crash into each other.
Derailments – A train goes off the tracks.
Fire or Explosions – Damage caused by onboard fires or blasts.
2. Untoward Incidents
These are unexpected events that cause harm but are not full-scale accidents. Examples include:
Terrorist attacks or violent crimes on the train.
Robbery or theft-related injuries suffered during a train journey.
Accidental falls – A passenger slips while boarding or exiting the train.
However, passengers who deliberately break rules (such as crossing tracks illegally or attempting suicide) are not eligible for compensation.
₹2 lakh for serious injuries requiring hospitalization.
₹25,000 for minor injuries like sprains or small fractures.
IRCTC Travel Insurance: Extra Coverage for Just 35 Paise
When booking an online ticket through IRCTC, passengers can opt for insurance at 35 paise per ticket. This provides extra coverage:
₹10 lakh for death or total disability.
₹7.5 lakh for partial disability.
₹2 lakh for hospitalization expenses.
₹10,000 for transportation of mortal remains.
Important: This insurance is only for passengers who book tickets online through IRCTC. People who book at railway counters cannot get this insurance.
Immediate Relief: Ex-Gratia Payment
Indian Railways also provides ex-gratia relief (emergency financial aid) in serious accidents. This is different from formal compensation and does not affect the final payout.
₹50,000 for death.
₹15,000 for serious injuries.
₹5,000 for minor injuries.
For example, after major accidents like the Balasore train crash in 2023, the government provided extra relief payments in addition to the ₹8 lakh compensation.
How to Claim Compensation?
Step 1: Report the Accident
Passengers or family members should report injuries or deaths to railway officials.
Keep important documents like the train ticket, medical records, and death certificate ready.
Step 2: File a Claim at the Railway Claims Tribunal (RCT)
Claims must be filed with the Railway Claims Tribunal (RCT), which has offices in major cities.
Applications can be submitted online or at the nearest tribunal office.
The tribunal examines the case and decides the compensation amount.
If approved, the money is transferred to the beneficiary’s bank account.
Step 4: IRCTC Insurance Claim (If Opted)
If the passenger had IRCTC travel insurance, the family must contact the insurance provider (e.g., ICICI Lombard, Royal Sundaram).
This process is faster than RCT claims, often settling within weeks.
Why Do Compensation Amounts Differ?
Various factors affect compensation:
Negligence – If the passenger was at fault (e.g., drunkenly falling off a train), the claim is rejected.
State & Central Aid – Sometimes, state governments provide extra relief (e.g., Odisha government gave ₹5 lakh per victim in the 2023 train accident).
Processing Delays – The Railway Claims Tribunal has a backlog of cases, causing delays.
Final Thoughts
Train accidents are rare but devastating. Compensation from IRCTC and Indian Railways helps victims and their families recover financially. Passengers should always book tickets online and opt for insurance to maximize their benefits in case of an unfortunate event. Knowing your rights can make all the difference in getting the help you deserve.
Naresh Saini, a graduate with over 10 years of experience in the insurance and investment sectors, specializes in covering topics related to insurance, investments, and government schemes. His expertise and passion for the financial industry allow him to provide valuable insights, helping readers make informed decisions. Naresh is committed to delivering clear and engaging content in these fields.
