In today’s digital era, almost everyone possesses a debit card, making it an essential financial tool for individuals across all socioeconomic backgrounds.
While credit cards may not be accessible to all, debit cards have become a common possession among the populace, as evident from the remarkable surge in savings accounts in recent years.
However, many individuals tend to underestimate the significance of their debit cards and overlook the valuable benefits they offer.
Surprisingly, most debit cardholders are entitled to a life insurance coverage of up to Rs 5 lakh (approximately $6,700) without any additional cost.
Regrettably, due to a lack of awareness regarding this insurance offering, only a fraction of people take advantage of this valuable protection.
Today, we bring you a guide on how to avail and claim this insurance.
When is the Insurance Applicable?
As soon as you open a savings account with any bank, you are issued an ATM card or debit card.
Along with this card, you automatically become eligible for Personal Accidental Insurance (Death), as mentioned on the official website of the country’s largest bank, SBI.
Coverage Amounts
The insurance coverage amount depends on the type of debit card you possess.
For instance, SBI Gold (MasterCard/Visa) cardholders are entitled to a coverage of Rs 2,00,000 (approximately $2,670).
However, it’s important to note that this coverage is activated only when the card has been used at least once in the last 90 days prior to the accident,
through any payment channel such as ATMs, point-of-sale (POS) terminals, or online transactions.
Insurance Eligibility Criteria
Additionally, if you have been using an ATM card from a government or private bank for at least 45 days, you may also be eligible for insurance coverage.
However, please keep in mind that the specific duration requirements may vary from bank to bank.
Furthermore, the coverage amount may also differ based on the category of the debit card issued by different banks.
Making an Insurance Claim
The process of claiming this insurance is relatively straightforward.
In the unfortunate event of the debit cardholder’s demise due to an accident, the nominee can approach the respective bank and file an insurance claim.
The claim submission typically involves providing the cardholder’s death certificate, a copy of the First Information Report (FIR),
a certificate establishing the cardholder’s dependents, and the original copy of the deceased’s certificate, among other necessary documents.
Insurance Coverage by Card Type
Different debit card types offer varying coverage amounts.
Classic Cards provide coverage up to Rs 1 lakh (approximately $1,340), Platinum Cards up to Rs 2 lakh (approximately $2,670),
normal Master Cards up to Rs 50,000 (approximately $670), Platinum Master Cards up to Rs 5 lakh (approximately $6,700),
and Visa Cards offer insurance ranging from Rs 1.5 to 2 lakh (approximately $2,000 to $2,670).
By understanding and utilizing the insurance benefits available on debit cards, individuals can enhance their financial security while making the most of their everyday transactions.
