ATM Card Insurance: Generally many people have a debit card. This is called ATM card. Even though its use has reduced due to increasing digitalisation, its use is still very much needed. Free insurance cover is also available with this debit card. No premium has to be paid in this. These include both accident insurance and life insurance
In today’s time, there will be very few people who do not use ATM card. Due to Pradhan Mantri Jan Dhan Yojana and RuPay Card, ATM has become an important part of everyone’s daily life. This has not only reduced the dependence on cash but has also made transactions easier. If you want to purchase anything, it can be done easily through ATM. Many types of facilities are also available from ATM. But due to lack of information, people are not able to get its benefit. Similarly, insurance is also available through ATM without paying premium.
As soon as the ATM card is issued from the bank. Similarly, cardholders get Accidental Insurance and Untimely Death Insurance (Life Insurance). Most people in the country are unaware that they also get life insurance cover on debit/ATM cards. According to the State Bank of India website, Personal Accidental Insurance (Death) provides cover to non-Air Bima debit card holders against untimely death.
Free insurance amount on ATM card
If you have used the ATM card of any bank for more than 45 days, you can avail free insurance facility. These include both accident insurance and life insurance. Now you will be able to claim insurance in both these situations. The amount has been fixed according to the category of the card. SBI gives a cover of Rs 4 lakh (death on air), Rs 2 lakh (non-air) to its Gold ATM card holders.
Whereas, Premium card gives cover of Rs 10 lakh (death on air), Rs 5 lakh (non-air) to the holder. Many banks including HDFC Bank, ICICI, Kotak Mahindra Bank provide cover of 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.
Debit card transactions are very important
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 card holder 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.
