Most ATM cardholders are unaware that using their card comes with free insurance benefits, including accidental insurance and life insurance.
If you have used your ATM or debit card in the last 45 days, you are eligible for this insurance without paying any premium.
Due to initiatives like Pradhan Mantri Jan Dhan Yojana and the widespread use of RuPay Cards, ATM cards have become an essential part of everyday life.
While many people know that ATMs make transactions convenient, few realize that they also provide free insurance coverage. Let’s explore how you can take advantage of this benefit.
Free Insurance Coverage on ATM Cards
As soon as a bank issues an ATM or debit card, cardholders are provided with accidental and life insurance coverage. Depending on the type of card, insurance amounts vary. For instance:
SBI Gold ATM Card Holders: ₹4 lakh (air accident), ₹2 lakh (non-air accident)
SBI Premium Card Holders: ₹10 lakh (air accident), ₹5 lakh (non-air accident)
Other banks like HDFC, ICICI, and Kotak Mahindra also offer insurance with varying coverage amounts, with some cards providing up to ₹3 crore in accidental insurance coverage. This insurance is free, and no additional documentation is required.
Key Conditions for Insurance Claims
Transaction Requirement
To activate the insurance, cardholders must complete transactions using their debit cards within a specific time frame. The transaction period required may vary by bank:
For some cards: A transaction must be done within the last 30 days.
For others: At least one transaction is required within the last 90 days.
Make sure to regularly use your debit card to ensure that your insurance remains active.
Steps to Claim ATM Card Insurance
- Check Your Eligibility: Ensure you have used your ATM card for transactions within the stipulated period (either 30 or 90 days, depending on the card type).
- Contact the Bank: If an accident or death occurs, notify the bank where your debit card is registered to begin the claim process.
- Submit Required Documents: Although no extra documents are required to activate the insurance, in case of a claim, you may need to submit proof of accident or death to the insurance provider.
- Receive Insurance Coverage: Once the claim is approved, the insured amount (up to ₹10 lakh depending on your card type) will be disbursed.
By keeping your debit card active and being aware of the available insurance benefits, you can ensure protection for you and your loved ones in case of unfortunate events.
