Debit Card Life Insurance

Debit Card Insurance:

Many banks offer insurance coverage linked to your debit or ATM card, which can be claimed in the event of the cardholder's accidental death. Below is an overview of debit card insurance, eligibility requirements, and the claim process.

What is ATM Card Insurance?

Most bank accounts come with ATM-cum-Debit Cards, which are useful for cash withdrawals and direct merchant payments. In case of the cardholder’s accidental death or permanent disability, a certain insurance amount can be claimed. However, eligibility criteria vary by bank and card type. Additionally, this insurance typically does not have a specific policy number, which can sometimes make the claim process confusing.

Do Major Banks offer Debit Card Insurance?

Banks such as SBI, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank provide complimentary Debit Card Insurance coverage to their cardholders.

SBI offers insurance for accidental death, whether related to air travel or not. To qualify, the cardholder must have used their debit card for a transaction at an ATM, Point of Sale, or online within 90 days prior to the incident. For air accident coverage, the flight ticket must have been purchased with the same debit card.

HDFC Bank provides accidental death insurance for cardholders, with coverage amounts depending on the card type. For base coverage, at least one Point of Sale transaction is required in the past 30 days. For international air accident cover, the ticket must be purchased with the HDFC debit card.

Axis Bank’s insurance is available on select cards, with eligibility determined by the bank. For most debit cards, a purchase must be made within 180 days before the accident. Air accident coverage requires the flight ticket to be purchased with the Axis Bank debit card. Only one card’s insurance is applicable if the customer holds multiple cards.

Kotak Bank's insurance eligibility for base cover requires at least two transactions of Rs. 500 each in the last 30 days; for enhanced cover, at least six such transactions in the last 60 days.

Debit Card Insurance Claim process:

The claims process varies by bank, but generally involves notifying the bank promptly and submitting required documents, such as:

• Completed claim form (signed by nominee)
• Death certificate (notarized/attested)
• FIR or Panchnama (notarized/attested)
• Post-mortem report (notarized/attested)
• No Objection Certificate from other legal heirs (if no nominee)
• Canceled cheque of nominee (for fund transfer)
• Hospitalization papers (if applicable)
• Newspaper reports (if required)
• Mandate form for NEFT payment
• Card details and copy
• Flight ticket and airline certification (for air accident claims)

Conclusion:

Banks in India provide complimentary insurance with debit cards, covering accidental death, permanent disability, purchase protection, lost card liability, and more. To claim, ensure you meet the transaction requirements and follow the bank’s claim process, even though these policies often do not have a dedicated policy number.

Regards,

Honvest Team.