Many bank customers may not be aware of this, but debit card holders can get free insurance coverage up to Rs. 3 crore without any additional cost. However, to be eligible for this insurance, they need to do one thing for sure.
ATM debit cards are available to almost everyone who has a bank account and are used for ATM withdrawals, online payments, and UPI activation. Despite this, many people don’t know that debit cards come with free insurance coverage.
Most banks offer free accident insurance coverage up to Rs. 3 crore on debit cards, and no additional charges or documentation are required. It’s important to note though, that this is a group insurance policy.
Debit Card Insurance
Banks provide accidental insurance coverage for certain debit cards based on specific conditions. To avail this debit card insurance coverage, you need to have carried out at least one transaction within a stipulated time period using the debit card that has insurance coverage. This means you have to withdraw cash using that ATM card.
HDFC Bank offers a Millennium Debit Card which provides insurance coverage of up to Rs. 5 lakh for domestic rail and road air travel, and up to Rs.1 crore for international travel.
However, to activate this insurance coverage, you must have completed a transaction with that card at least once in the last 30 days. Banks decide the eligibility to provide free accident insurance coverage based only on these transactions.
Kotak Mahindra Bank Classic Debit card holders have to carry out at least two transactions of Rs. 500 each in the last month to be eligible. As per DBS Bank, at least one transaction should be conducted in three months to avail of the coverage.
Acceptable Transactions for Debit Card Insurance
Insurance coverage is applicable only for selected transactions made on debit cards. UPI transactions are not allowed. Transactions made at point of sale (POS) and e-commerce online transactions are eligible for insurance claims.
Required Documents to Cloam
- Nominee’s bank account details.
- Fully filled claim form.
- Original Death Certificate.
- Full Postmortem report.
- An FIR or Panchnama is required in accident cases.
- Details about the Insurance Offered Debit card.
- News coverage clippings and paper cuttings from the media.
- Death certificate if the cardholder dies on the spot.
- Papers related to those who get injured in an accident and die while receiving treatment in the hospital.