The State Railway of Thailand (SRT) plans to provide passengers and staff on board its trains with accident insurance for the first time, said SRT governor Wuthichart Kalyanamitra.
Mr Wuthichart said an SRT committee is drafting the terms of reference (ToR) and once they are finalised, bids to select an insurance firm will be called, possibly this month. The insurance coverage should start in November.
Currently, the SRT pays compensation to victims of accidents on its trains. Under the insurance scheme proposed, a private company will pay the victims. Costs related to the scheme will be shouldered by the rail agency, not incorporated into train fares.
The SRT governor insisted the insurance scheme has nothing to do with the SRT's proposal to raise fares for third-class train services. The fare increase is needed to reflect costs and the rail agency has not raised fares for three decades, said Mr Wuthichart.
The increase would ease the financial burden of the Finance Ministry, which has been subsidising the loss-ridden SRT. The extent of the fare rise, and when it will take effect, have yet to be decided.
Panthop Malakul Na Ayutthaya, chief of SRT's rail business unit, said victims of accidents should receive a payout promptly under the scheme without having to go through the SRT's lengthy claims process.
The insurance coverage will be provided to all passengers including those using free train services, he said. Initially it will offer compensation of up to 300,000 baht for the death of a passenger and 30,000 baht in case of an injury, he said.