Bengaluru, Nov 22: When you purchase a train ticket online and opt for insurance, make sure you appoint a nominee. With the insurance premium being just 92 paise, many do not bother appointing a nominee. Not appointing a nominee would not mean that the insurance money would not be settled to the next of kin.
It would only add to the delay in settling the claim. This is because the next of kin would have to produce the legal heir certificate and such documentation can lead to a delay.
On Sunday, India witnessed a terrible tragedy in which nearly 140 people were killed after Indore-Patna Express derailed near Kanpur. Around 100 passengers who had booked the ticket online had opted for insurance. The travel insurance scheme was introduced on September 1 2016 and commuters could avail the same after paying a premium of 92 paise.
The problem, however, is that most passengers forget to nominate their next of kin while taking such insurance. It is to do with the fact that it is a 92 paise premium which is not taken seriously. The other fact is that many do not take travel security seriously and hence forget to appoint a nominee.
Those passengers who have not appointed a nominee are often reminded through messages and emails. However, the response to such mails or messages has not been something to tom-tom about. In such a case, the disbursement process becomes extremely difficult.
The insurance firm would not know whom to disburse the insurance amount to. They would have to find the address of the person and send out a reminder for the next of kin to collect the kin. This too is a cumbersome procedure since the next of kin does not automatically get the claim if not appointed nominee.
He or she would have to provide legal heir certificates and only after a thorough verification is the claim amount disbursed.
In the case a nominee is appointed then the process is smoother as the insurance company would directly disburse the money to the nominee.