Debit Card Insurance

Did you know that your bank’s Debit card or ATM card may have insurance coverage? It can be claimed easily in the unfortunate event of the cardholder’s death. Let us now find out about Debit card insurance, its eligibility criteria, and how to claim it.

What is ATM Card Insurance?

All bank accounts give ATM-cum-Debit Cards to their account holders. It comes in handy while withdrawing money as well as making direct transactions with merchants. A sum of money can be claimed in the unfortunate event of the death or permanent disability of the cardholder. 

But there are some prerequisites when it comes to being eligible for the insurance, which differs depending on your bank and type of card. Also, this insurance does not have a policy number, which might create confusion about claiming the amount. 

This article will discuss the kinds of ATM card insurance offered by five major banks in India.

Is There Any Insurance on Debit Cards of Major Banks?

Banks like SBI, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank give complimentary insurance coverage to cardholders. 

SBI Debit Card Insurance

SBI offers insurance coverage for air or non-air accidental death. Here are the details of the death coverage provided by SBI Debit cards -

• To be eligible, the cardholder must have used the Debit card for a transaction at an ATM, Point of Sale, or e-commerce website within 90 days before the accident

• Additionally, to be eligible for air death coverage, the ticket must have been purchased using the same Debit card

The amounts that are available based on the coverage are mentioned below -

Please note that the amounts and criteria are subject to change based on the bank.

Apart from this, the SBI RuPay Platinum Debit Card offers a death or permanent disability coverage of Rs.2 Lakh. To be eligible for this, you should have at least one successful RuPay Card transaction at any Point of Sale or e-commerce within 30 days before the date of the accident.

SBI Debit Card Purchase Protection

SBI also offers purchase protection that covers the loss of articles or goods purchased due to theft or burglary. This includes theft from your vehicle but excludes perishable items and precious stones. 

For this to be eligible, the burglary must happen within 90 days of the purchase. You must purchase the item using the eligible Debit card variants at any Point of Sale. You can get coverage of Rs.5,000 to Rs.1 Lakh depending on the type of your card.

SBI also offers a Purchase Protection Cover to cards issued to Salary Package Account Holders (all MasterCard/VISA variants) of Rs.2 Lakh. 

HDFC Bank ATM Card Insurance

HDFC Bank offers accidental death coverage for its cardholders. The amounts vary based on the type of card -

Please note that the amounts and criteria are subject to change based on the bank.

*The amount depends on the last 12 months Spend based criteria 

Other criteria for the insurance coverage are -

• For free Accidental Base Coverage, the cardholder must have completed one shopping transaction at a Point of Sale in the last 30 days

• For Accidental Air Insurance Coverage on International travel, the ticket should have been purchased using the same HDFC Bank Debit Card

ICICI Bank Debit Card Insurance

ICICI Bank offers the following amounts as insurance coverage -

Please note that the amounts and criteria are subject to change based on the bank.

The terms and conditions for Debit card insurance are -

• Only active accounts can claim personal and air accident cover 

• Insurance cover is not applicable for Basic Savings Bank Deposit Accounts (BSBDA)

• Personal Accident Death Insurance and Air Accident Death Insurance are only applicable in the unfortunate event of the death of the cardholder

Axis Bank ATM Card Insurance

Axis Bank insurance cover is available on select cards and the cardholder’s eligibility will be decided by the bank. However, some general terms and conditions are mentioned below -

• To be eligible for Personal Accidental Insurance covers for all Debit cards, except RuPay Platinum Debit Card, the card should be used for a purchase within 180 days before the date of the accident for which the claim has been raised.

• To be eligible for the Personal Accidental Insurance Cover, the report must be made to Axis Bank within 90 days from the date of the accident.

• For RuPay Platinum Debit Card, at least 1 financial or non-financial transaction at an ATM, Micro ATM, point of sales, e-commerce, or business correspondence by any payment instrument, should be made within 45 days before the date of the accident

• To be eligible for Air Accident Insurance Cover, the flight ticket should be purchased using the Axis Bank Debit Card

• Air Accident Insurance Cover is applicable only on travel through commercial flights. The cover does not apply to the Pilot and crew members. 

• In case of an Air Accident, only the Air Accident Insurance Cover will be applicable. Other Personal Accident Insurance Coverage will not be applicable.

• If a customer has multiple debit cards, insurance coverage will be applicable only on one of the cards. The active Debit card that has the highest insurance cover will be considered.

• To be eligible for Lost Card Liability and Purchase Protection Cover, at least 1 purchase transaction should be made within 90 days before the incident.

• Purchase Protection Cover includes protection against all unauthorized transactions done through the Debit card. 

Kotak Mahindra Bank Debit Card Insurance

Kotak Mahindra Debit Cards use a secure 6-digit PIN and they too offer complimentary insurance coverage. The amounts are mentioned below -

Please note that the amounts and criteria are subject to change based on the bank.

Some criteria to be eligible for the insurance coverage are mentioned below -

• To be eligible for Personal Base Cover, you need to have a minimum of 2 Points of Sale or e-commerce transactions of Rs. 500 each in the last 30 days

• To be eligible for Personal Accident Enhance Cover, you need to have a minimum of 6 Points of Sale or e-commerce transactions of Rs. 500 each in the last 60 days

Kotak Mahindra Other Insurance Coverages

Kotak Mahindra Bank cards also have lost card liability, purchase protection, and lost baggage claims. Here are the amounts offered -

• Lost card liability coverage amounts from Rs.2.5 Lakh to Rs.6 Lakh depending on the type of card

• Lost baggage coverage of Rs.1 Lakh for all types of cards

• Purchase protection covers fire and burglary and offers Rs.50,000 to Rs.1.5 Lakh based on the type of card

How to Claim ATM Card Insurance After Death?

The specific process of claiming insurance coverage may vary depending on your bank. In general, you will have to inform the bank of the incident at the earliest and submit the required documents. 

The process of Debit card insurance claims for some major banks is -

• If you are an ICICI Bank customer, you can claim Insurance coverage in the unfortunate event of the death of a cardholder by calling the ICICI Lombard call center on 1800 2666 within 15 days.

• If you are an SBI customer, you can call the number 1800 2666 5844. The policy number is 4112-400401-23-7001805-00-000, which should be mentioned while contacting the insurance company. The claim should be initiated within 90 days of the accident.

• If you are an Axis Bank or Kotak Mahindra Bank customer, you need to visit the nearest bank branch with the required documents.

How to Claim Accidental Insurance on Debit Card?

To claim insurance after the death of the cardholder, usually, the following documents are required -

• Duly completed Claim Form

• Original Personal Accident Death (PA) Claim form duly filled in and signed by the Nominee

• Copy of Death Certificate - Notarised/Attested by Gazetted officer

• Copy of FIR/Copy of Panchnama - Notarised/Attested by Gazetted officer

• Copy of Post mortem report - Notarised/Attested by Gazetted officer

• Consent letter from other legal heirs on Rs 50/100 stamp paper (No Objection Certificate by other legal heirs) – Original (in case no nominee in the account)

• Canceled cheque of the nominee with name printed on it - Original (for direct fund transfer)

• Hospitalization papers, if the cardholder passed away in the hospital 

• Some banks may require you to submit newspaper cuttings if the accident was reported to local media

• Mandate form for making payment through NEFT supported by canceled cheque copy

• Card details along with a copy of the card

• Airline Ticket, along with certification from the airline if death is due to Air Accident – applicable only for Air Accident Insurance Cover

• Proof of Flight ticket bought by the cardholder via the Debit Card the claim is being filed from, in case of Air Accident Insurance Cover

Conclusion

Banks offer free complimentary insurance coverage with their Debit cards. It covers death by accident, permanent disability by accident, loss of baggage, purchase protection, lost card liability, etc.

If you know ‘how to claim accidental insurance on Debit card’,  it can be helpful to claim the funds in times of emergency. This insurance does not have a policy number but can be easily claimed by getting in touch with your nearest bank branch.

There are some basic prerequisites to be able to claim insurance. You generally need to complete a basic transaction using the Debit card at some Point of Sale or an e-commerce website within a stipulated time before the accident.