March 3, 2006	Friday	Safar 2, 1427

KARACHI, March 2: Train passengers travelling a minimum of 500-km may be asked to pay Rs3-5 more on their tickets as the Pakistan Railways plans to generate funds to be utilized for compensation payment to the victims of accidents.

In the last nine months, more than 130 passengers lost their lives and about 1,000 were injured, many of them maimed for life, in four train accidents. Two recent accidents were termed acts of sabotage.

Five major train accidents from 1953 to 1992 claimed 774 lives. A few of the major train accidents in Pakistan are: the 1953 accident at Jhampir in which 200 persons lost their lives; in 1954, 60 people were killed; in 1969, 80 persons lost their lives; and in 1990, some 350 lost their lives at Sangi, near Sukkur. The latest tragic accident was at Ghotki in July last year that involved three trains.

The enquiries into these accidents were never made public. No minister or senior officer ever resigned, as it happened in India. The only recourse is to give a standard amount of money to the heirs of the dead, which too in many cases, never reach the deserving persons.

The standard rate of compensation for those died in train accident these days is Rs200,000 per victim, and Rs25,000 to Rs50,000 is for those who are injured. There is no provision for those who are disabled for life in the accident.

The Pakistan Railways has been seeking expressions of interest from insurance companies for accident risk cover for the passengers. In June last year, the EoIs were invited again by the Pakistan Railways.

“Yes, we received response from the insurance companies and since then the number has been shortlisted to four,” the federal secretary for railways Shakil Durrani informed Dawn by telephone from Islamabad on Thursday.

But, he said that the direct compensation payment by the Pakistan Railways was quick and prompt, while the insurance companies would take a much longer time to fulfil the legal requirements.

On Wednesday, the executive committee of Pakistan Railways was said to have discussed the issues of compensation payment to the victims of train accidents and insurance companies’ involvement in the job.

Postal Insurance and State Life Insurance are the two public sector institutions being mentioned as the possible partners in the job. The executive committee has now referred the issue of compensation payment to the federal finance ministry.

“Our average annual compensation payment to the victims of accidents is Rs6.5 million,” Mr Durrani said, pointing out that the number of train accidents in Pakistan is not too big.

The National Insurance Corporation has sought information on the record of small and big accidents, details of rolling stock and quantum of commercial cargo before offering an insurance cover to the cargo.

“We will offer our insurance package on cargo losses after getting this basic information,” a senior executive of the corporation said and added that on the basis of this formation, the NIC would work out policy details and premium payment.

The cases of theft and pilferage and other damage to the merchandise cargo and passengers baggage remain unreported and there have been complaints that compensation for average citizens is too meagre.

But the problem is that there is no detail of the rolling stock and valuation of its assets. Most of the railway tracks and sleepers and other installations are 80-100 years old. For some mishaps, the convenient excuse for the Pakistan Railways is sabotage.

Insurance companies are reluctant to offer insurance cover to the Pakistan Railways because the business cannot be shared with the re-insurers. Re-insurers refuse to share risk for terrorism and sabotage and offer too high rates.