KSRTC to Launch Insurance Scheme for Passengers

Published: 19th November 2014 06:00 AM  |   Last Updated: 19th November 2014 06:00 AM   |  A+A-

THIRUVANANTHAPURAM: For the first time, KSRTC passengers are poised to become a privileged lot. An insurance scheme for passengers, which was in the air for quite some time, has been finalised with a maximum compensation of `5 lakh per person. The notification in this regard, along with collection of cess, will bei ssued within a couple of days.

 Addressing a select group of mediapersons here on Tuesday, Transport Minister Thiruvanchoor Radhakrishnan said it has been decided that bus tickets valued at `24 and less will not have any cess component tagged to it. ‘’The cess amount would vary from `3 to `10. Tickets valued up to `30 will have  `2 cess added to it. Up to `50 tickets, a cess of `3 will be levied and up to `75, it will be `4. The maximum fare attracting cess will be `100.

The cess on Rs 100 valued tickets and above will be Rs 10,’’ the Minister said. Currently, Re 1 is being collected as cess on tickets valued at `15 and the slab goes up with higher value.

Thiruvanchoor said that a daily revenue of  `40 lakh is expected from cess collection, from an estimated five lakh passengers utilising the services of KSRTC every day.

“An annual premium of Rs 3.5 crore has to be paid to four insurance companies, with which the KSRTC has entered into an agreement for providing group insurance to passengers. The rest of the amount in the estimated annual cess revenue of `144 crore will be shared for pension payment,’’ he said.

Unlike MACT cases which gets dragged for many years, the insurance amount will be released immediately in the event of a mishap involving KSRTC buses, once the minimum procedures are over, the Transport Minister said.

The Minister also unbundled a plan to make a turn around of KSRTC. “More than 5000 buses are plying now, including a vast number of  vehicles which were lying idle, when I took over. A fleet of new buses is going to be added, which will take the numbers to 6,500 and the daily revenue generation from an average `5.7 crore at present to `7 crore shortly,” the Minister added.

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