Insurance on ATM Card: In today’s time, there are very few people who do not use ATM cards, especially after the free Pradhan Mantri Jan Dhan accounts and RuPay Card, ATMs have become an important part of people’s daily lives. The debit cards have not only reduced the dependence on cash but have also made transactions effortless. We all use debit cards or ATM cards for purchasing goods and fund transfer purposes. However, very few people are aware that free insurance is also available for ATM card holders.
With ATM cards, issued by various banks, cardholders get Accidental Insurance and Untimely Death Insurance (Life Insurance). Most of the people in the country are unaware that they also get life insurance coverage on debit/ATM cards. According to the State Bank of India website, Personal Accidental Insurance (Death) provides insurance against untimely death to non-Air Bima debit card holders.
Read More: SEBI offers relief on KYC compliance norms for mutual fund investors
Free insurance for ATM cardholders
If you have used the ATM card of any bank for more than 45 days, you can avail free insurance facility which includes, accident insurance and life insurance. The amount has been fixed according to the category of the card. SBI gives a cover of Rs 4 lakh (death on air), and Rs 2 lakh (non-air) to its Gold ATM card holders. The Premium cardholders get a cover of Rs 10 lakh (death on air), and Rs 5 lakh (non-air). various banks including HDFC Bank, ICICI, and Kotak Mahindra Bank provide cover for different amounts on their debit cards. Some debit cards offer free accidental insurance coverage up to Rs 3 crore. This insurance coverage is provided for free. In this, no additional documents are asked from the bank.
Read More: Get PVC Aadhaar Cards For Your Family With The Same Phone Number, Know How
Transactions are important to avail of insurance benefits
The benefit of insurance is available only when certain transactions are done through that debit card within the specified period. This period may vary for different cards. To activate the insurance policy on some ATM cards, the cardholder is required to make a transaction at least once in 30 days. Whereas some cardholders have to make one transaction within the last 90 days to activate the insurance coverage.
