SC says Indian Railways must offer insurance to counter ticket buyers too

New Delhi: In significant relief for train passengers, the Supreme Court has observed that individuals purchasing railway tickets at booking counters cannot be denied the option of travel insurance when the facility is available to those booking tickets online.

A Bench comprising Justices Ahsanuddin Amanullah and R Mahadevan noted that passengers booking tickets through online platforms are allowed to opt for insurance by paying a small additional amount, whereas those buying tickets at physical railway counters currently do not have the same option.

Senior Advocate Shikhil Suri, appearing as amicus curiae, brought the issue to the Court’s attention and pointed out that the Railways had not responded to concerns regarding this disparity.

Responding to the Court, Additional Solicitor General Vikramjit Banerjee, representing the Union government, said the Railways was working on mechanisms to identify passengers purchasing tickets at counters so that insurance certificates could be issued and claims processed. He said the absence of identity details in such cases could potentially lead to misuse and fraudulent claims against insurers. However, the Court indicated that such concerns cannot justify denying the facility to a section of passengers.

“There cannot be a distinction with regard to the manner in which a ticket is bought by passengers, that is, online or over the counter, by granting the facility of insurance to one segment and not to the other segment,” the Bench observed.

The Court added that while the possibility of misuse may need to be addressed, the Railways must develop a workable mechanism rather than depriving counter-ticket passengers of the benefit.

The Bench further noted that once the Railways sells a ticket, it has a responsibility to ensure the passenger can be identified, particularly in the present era where advanced technology is readily available. According to the Court, such technological solutions could be deployed at ticket counters to record passenger identities and extend the insurance facility to them.

“On this, we only indicate that there cannot be a distinction with regard to the manner in which a ticket is bought by passengers i.e., online or over the counter, by granting the facility of insurance to one segment (online ticket booking) and not to the other segment (tickets bought over the counter). No doubt, the issue of misuse is a factor which needs to be looked into, but then a way out for the same has to be worked out and evolved, but not at the cost of depriving one segment of public with the benefit which is given to another segment, for a reason, which in our considered opinion, cannot be allowed to be a basis for such distinction. When the Railways sell tickets, it is their responsibility to take all the measures which are available today, especially in the modern era where the facility of advanced technology is available, through which identities can easily be fixed and noted and to put such a technology at use at the ticket counters from where a common man buys ticket,” the Bench observed.

Case background
The observations were made while hearing applications linked to earlier directions issued by the Court on railway safety and passenger welfare. The Bench also expressed dissatisfaction with how the Railways had presented details of its spending priorities and asked for a clearer affidavit explaining how funds were being allocated and utilised.

The matter will be taken up for further hearing on April 1, 2026.
(With Live Law inputs)