Have your bank informed you about this free insurance cover that you get with an ATM card?
As per the Reserve Bank of India’s data, Indian banks have issued over 92 crore debit cards as of September 2021. Almost every account holder gets a free accidental insurance cover up to Rs 10 lakh that comes with your ATM. This insurance cover is available to almost all of us but only a few are aware as a major part of the population has bank accounts and debit and credit cards.
Most ATM or debit cards and credit cards issued by public and private banks come with a complimentary accidental death or accidental hospitalisation cover which many of us are not aware of.
The insurance cover ranges from Rs 50,000 to Rs 10 lakh. The amount differs from bank to bank.
Almost all debit card holders are eligible for this free insurance. However, this is not life insurance, medical insurance, or health insurance but only accidental insurance which can be claimed either in case of permanent disability or death of the cardholder.
In case of the death of the cardholder, his/her family can claim the insurance with all required documents.
How To I Claim Insurance Against My ATM Card After An Accident?
One of the most important conditions to claim this cover is that the car should have been in use 90 days prior to the accident. The card should have been used either at ATM, point of sale (PoS) or on e-commerce platforms, within the mentioned 90-day period.
For Example, to claim RuPay card insurance from SBI bank, the following are the documents that you’ll need.
- Claim Form duly completed and signed.
- Original death certificate.
- Original or Certified copy of FIR / Police report.
- Original or Certified copy of Post Mortem Report along with Chemical Analysis/FSL reports (if needed).
- Photocopies of the Aadhaar card of the cardholder as well as the nominee.
- Declaration from Card Issuing Banks duly signed by authorized signatory and bank stamp which should specify that:
- The cardholder is holding a RuPay card on RuPay issued IIN and mentions the 16-digit card number
- Compliance with 90 days transaction criteria (to be supported with transaction log/account statement from the bank’s system) Nominee Name and his banking details (including Passbook copy)
- Brief description of the Accident as per FIR translated into English or Hindi.
- Bank official’s Name and contact details with email ID.
Accidental Insurance For Premium And Non-Premium Card Holders
The cardholders who own a non-premium RuPay card, they’ll get insurance cover from New India Assurance. On the other hand, the premium RuPay cardholder will get the cover from TATA AIG.
Premium cardholders are eligible for Rs 2 Lakh accidental free insurance while non-premium members are eligible for Rs 10 lakh accidental free insurance.
This article is written by Varsha. You can reach out to the author via email at firstname.lastname@example.org.