Free Insurance Benefits: How to Claim Coverage on Your ATM Card?

In today’s digital era, ATM cards have become indispensable, thanks to initiatives like Pradhan Mantri Jan Dhan Yojana and RuPay Card.

They not only reduce reliance on cash but also streamline transactions. Despite their widespread use, many aren’t aware of the additional perks they offer, including free insurance coverage.

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Understanding Your Free Insurance Coverage

Upon receiving your ATM card, you’re automatically entitled to Accidental and Life Insurance coverage. Surprisingly, a large portion of cardholders are unaware of this benefit.

For instance, holders of non-Air Bima debit cards are eligible for Personal Accidental Insurance (Death) as per the State Bank of India website.

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Claiming Your Free Insurance

To avail yourself of the free insurance facility, you must have used your ATM card for more than 45 days.

This coverage includes both accident and life insurance, with varying amounts based on your card category.

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For example, SBI provides a cover of Rs 4 lakh (death on air), Rs 2 lakh (non-air) for Gold ATM card holders, while Premium cardholders enjoy higher coverage.

Other banks like HDFC, ICICI, and Kotak Mahindra Bank also offer different insurance amounts on their debit cards, some providing coverage up to Rs 3 crore, all at no additional cost.

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Ensuring Coverage Activation

It’s crucial to note that insurance benefits are activated only through specific transactions made with the debit card within a designated period.

This period varies among different cards, with some requiring transactions every 30 days to activate the insurance policy, while others mandate at least one transaction within the last 90 days.



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