railway travel insurance

Railway Travel Insurance Scheme: Review

What Is Railway Travel Insurance Scheme?

Narendra Modi launched the Railway Travel Insurance Scheme on 1st September 2016, to ensure safer journeys via Indian Railways. This is another revolutionary government scheme that aims at providing complete insurance to a person if they become a victim of an unfortunate train accident. The aim is to provide better accident relief facilities and ensure an overall safety as far as Rail journeys are concerned. The insurance cover that can be claimed is up to 10 Lakhs.

railway travel insurance

How To Apply For Railway Travel Insurance Cover

After booking and generation of E-Ticket via IRCTC website, an SMS will be sent to the citizen who has booked the ticket. That SMS will state that the Railway Travel Insurance can be availed by paying a nominal amount of 92 paise per passenger. Also, a link will be given in the SMS from where the user will be redirected to apply for the insurance. This insurance is, of course, optional and a citizen may or may not avail it as per will. Also, this insurance option is available to all passengers irrespective of the class and status of the ticket. Therefore, all confirmed, waitlisted and RAC passengers can avail this insurance.

Exemptions In Railway Travel Insurance

There are certain criterions under which a passenger cannot avail Railway Travel Insurance. They are as follows:

  • Any passenger traveling by local or suburban trains cannot avail this insurance.
  • This insurance is applicable only if the passenger is above 5 years of age.
  • Foreign citizens cannot avail this insurance.

This premium amount of 92 paise per passenger is non-refundable and hence will not be credited in case of cancellation of a ticket.

Compensation According To Railway Travel Insurance Scheme

As per the set norms, the amount of compensation in case of an untoward accident is as follows:

  • In case of death and complete physical disability: 10 Lakhs
  • In case of semi-physical disability: 7.5 Lakhs
  • In case a person needs to be hospitalized due to serious wounds: 2 Lakhs
  • Transporting mortal remains after an incident like dacoit attack, Riots, Shooting, etc: INR 10,000

To conclude, the Railway Travel Insurance Scheme is a necessary step that had to be taken, for the Rail Department to take better care of their passengers and avoid any unwanted accidents by being more alert about the track conditions, foggy weather or potential attacks.

Railway Travel Insurance Scheme: Application Policy

Railway Travel Insurance Scheme offers compensation, but that is liable to certain terms and conditions. The application policy states that the intimation towards claiming the premium should be made within four months within occurrence of the untoward event that demands a compensation. Then the claim will be approved by the Railway Insurance Department and the premium will be processed within 15 days. The compensation will be extended towards the aggrieved in form of a cheque of the premium amount. Thus the application and cancellation policy are flexible as it occurs within a short period of time.

GST

10 Things You Need To Know About GST

The Union Budget 2017 that was introduced by Arun Jaitley on 1st February 2017 stated that the GST bill is to be implemented from 1st July 2017. Both the central and state government have signed an agreement in order to commence the implementation of GST. Though in its initial years post demonetisation, GST will be difficult on the operation form, but here the future is being considered. Thus, even though a tough stride has to be taken to maintain the GST reform initially it will help generate excellent revenues in future. Thus the fiscal year 2017-18 is very crucial with the advent of GST bill.

What is GST?

GST stands for Goods and Services Tax. The GST bill was to be launched long back in April 2014, but since it faced opposition it will finally be levied from 1st April 2017. The GST bill is the 122nd amendment of the constitution which will bring one of the largest economic waves in the country. The bill states that every state, region and district in India will follow a common taxation structure in case of goods, products and services delivered. This will lead to the demolition of other taxes like state level service tax and state level VAT( Value Added Tax). This unification in taxation system will ensure a stable economic system and will completely abolish corruption in market transactions.

What other changes will be seen in the constitution on the issue of GST bill?

With the 122nd amendment being issued an Article will be added in the constitution stating that the right to legislating GST will lie with the Central and the State Governments.

What is the governing body responsible for GST framing?

A governing body known as GST Council will be formed to legislate the GST. The chairman of this council Finance Minister at the Central level and the State Finance Minister at the State level. At State level, there can be changes as per nominated by the State Government. The other ministers who will be part of this council will be nominated from the Finance department at both Central and State Level.

What is the framework for implementation of GST?

The GST is divided into two parts: The State Goods and Services Tax (SGST) and the Central Goods and Services Tax (CGST). Both SGST and CGST will be simultaneously levied for market transactions. The Central Government will be responsible for collecting the CGST and the State Government will be responsible for collecting the SGST.

How will the CGST and SGST be decided?

The GST Council will be responsible for taking all decisions regarding levying GST at both Central and State level. They will be reviewing the market rates of all the products and applying the unified tax rates on all goods and services.  The GST council may also decide to waive taxes on certain goods and change the uniform rates based on their discretion.

What are the exceptions to GST scheme rule?

All alcoholic liquor will not come under GST and will be exempted from the taxes levied by GST. Also, non-renewable fuel resources will fall under varied rates as decided by the GST council. They will not be subject to the unified rate.

How will GST function in case of the Inter-State trade framework?

In the case of inter-state trading, an additional 1% tax will be levied apart from the GST. This tax will have to be paid for demand and supply of goods.

What if a State incurs heavy losses under the GST Scheme?

In the case of major losses incurred by any State under the GST Scheme, the Council will compensate for the losses by paying the lost funds to the State for a duration of 5 years.

What will be the positive results of issuing GST?

The economic worth of a country is defined by its GDP rate. This system of unified taxation would mean a complete transparency in market taxation systems and an equality as far as economic gains due to taxes are concerned. This would also mean better trading systems as GST will affect the export of goods. As a result, an increase in GDP will be seen. Thus the stability of economic system will be retained, giving a profit turnover of over 10 billion dollars in India.

What will be the CONS of GST system?

The GST will be issued in accordance with the global market taxation scheme. The global range of taxation is 14% to 22%. Thus the average range is seen to be between 18%-20%. So the GST issued will levy an 18% tax on all goods, products as services. While this will maintain uniformity, certain tax values which were originally low will now rise.