SBI Card has announced a major change for its credit card users. The company has decided to stop offering the free air accident insurance cover that was available on many co-branded credit cards. This change will come into effect from August 11, 2025.
Until now, some SBI ELITE and PRIME credit cards—issued in partnership with banks like UCO Bank, Central Bank, PSB, Karur Vysya Bank, and Allahabad Bank—provided free air accident insurance of ₹1 crore or ₹50 lakh. But starting August 11, this benefit will no longer be available.
Cards Losing ₹1 Crore Air Accident Insurance Cover
The following SBI co-branded credit cards will no longer offer the ₹1 crore insurance cover:
Karnataka Bank SBI Card Prime
Karnataka Bank SBI Platinum Credit Card
City Union Bank SBI Card Prime
Allahabad Bank SBI Card Prime
United Bank of India (UBI) SBI Platinum Credit Card
Oriental Bank of Commerce (OBC) SBI Visa Platinum Card
Federal Bank SBI Platinum Credit Card
Bank of Maharashtra (BOM) SBI Platinum Credit Card
Changes to Billing System
In addition to the insurance change, SBI Card has updated its billing and payment process, which came into effect on July 15, 2025. Now, the minimum amount due will include:
The full GST amount
Any EMI
All fees and finance charges
Any overlimit amount
Plus, 2% of the remaining outstanding bill
How Payments Will Now Be Adjusted
From now on, when customers make a payment, it will be adjusted in the following order:
GST
EMI
Fees and charges
Finance charges
Balance transfer
Retail purchases
Cash advances
Customers holding the above-mentioned cards are advised to carefully go through the new terms and conditions before August 11, 2025, and decide if they want to continue with the same card or switch.
