Most of us use ATM cards every day, whether it’s for withdrawing money, making purchases, or paying bills. Thanks to initiatives like the Pradhan Mantri Jan Dhan Yojana and RuPay cards, ATM cards have become an essential part of our financial lives. However, many people are unaware that ATM cards also come with free insurance coverage, including accidental and life insurance, without requiring any premium payment.
If you’ve been using your ATM or debit card regularly, you may be eligible to claim insurance benefits in case of an accident or untimely death. This insurance is offered automatically when you receive your card, but many cardholders don’t take advantage of it due to lack of awareness.
Free Insurance Coverage on Your ATM Card
When you use an ATM card from any major bank in India for over 45 days, you become eligible for free accidental and life insurance. The amount of coverage varies depending on the type of card you hold. For example, State Bank of India (SBI) offers accidental death insurance on its debit cards:
- Gold Card Holders: ₹4 lakh for death in air travel, ₹2 lakh for non-air accidents.
- Premium Card Holders: ₹10 lakh for air accidents, ₹5 lakh for non-air accidents.
Other major banks like HDFC, ICICI, and Kotak Mahindra Bank also provide insurance on their debit cards, with some cards offering up to ₹3 crore in coverage. The best part? You don’t need to submit any additional documents to claim this insurance—it’s automatically activated once you meet the transaction requirements.
How to Activate and Claim ATM Card Insurance
To benefit from the insurance coverage on your debit card, you must complete at least one transaction within a specific time frame. Each bank has its own rules, but typically:
- 30 Days: Some banks require you to make at least one transaction within 30 days to keep the insurance active.
- 90 Days: Other cards allow you to maintain coverage as long as you’ve made a transaction in the last 90 days.
These transactions could be anything from withdrawing cash to paying for a purchase at a store or online. The key is to keep using your card regularly to ensure that your insurance remains valid.
Steps to Claim Free Insurance on Your ATM Card
- Verify Eligibility: Ensure you’ve been using your ATM card actively for at least 45 days, making transactions as required by your bank’s policy.
- Check Insurance Coverage: Log into your online banking account or contact your bank to verify the amount of insurance coverage associated with your specific debit card. This could range from ₹2 lakh to ₹10 lakh or more, depending on the card type.
- Initiate Claim Process: In the unfortunate event of an accident or untimely death, reach out to your bank’s customer service to initiate the claim process. They will guide you on the required documents and formalities. Usually, minimal documentation is needed as the insurance is already linked to your card.
- Submit the Claim: Provide the necessary documents, such as proof of identity and relevant certificates, to the bank. Once verified, your claim will be processed, and the insurance amount will be disbursed.
Debit Card Transactions Are Essential
Remember, the free insurance is only applicable if you’ve used your ATM or debit card for transactions within the required period (30 or 90 days). So, it’s important to keep your card active to enjoy this valuable benefit.
Many people miss out on this financial protection simply because they don’t know it exists. Now that you’re aware, make sure to check your card’s terms and keep your transactions going so you can claim this free insurance when needed.
