ATM Card Holder Can Get Insurance Worth Rs 10 Lakh: Almost every account holder gets a free accidental insurance cover up to Rs 10 lakh that comes with your ATM.
In today’s world, ATM cards have become an integral part of our daily life. But have you ever thought that your ATM card can also offer you insurance cover? Yes, you read it right!.
Nowadays, several banks are offering insurance coverage to their customers who use their ATM cards for transactions, but it is a feature that many people don’t know about.
In this page, we will guide you on how to get an insurance cover of Rs. 10 lakh with your ATM card and we will explore the different types of accidental insurance cover provided by banks in India and how you can maximize your benefits.
| Name of the Insurance | ATM Card Insurance |
|---|---|
| Title | Know the ATM Card Insurance |
| Subject | Banks are providing accidental insurance cover on ATM Card |
| Category | Debit Card |
| SBI | Insurance Cover Available on Personal Banking |
| ATM Card insurance claim form | Download Debit Card insurance claim form |
What is an insurance policy with an ATM card?
An insurance policy with an ATM card is a unique offering from banks in collaboration with insurance companies. The insurance policy is designed to provide coverage against accidental death or permanent disability caused due to an accident.
The policy is activated when the cardholder makes a minimum transaction of Rs.1000 in a calendar month using their ATM card (Debit Card).
How does it work?
The insurance policy is activated when the cardholder makes a minimum transaction of Rs.1000 in a calendar month using their ATM card.
The coverage provided is valid for a month from the date of the first transaction in that calendar month. If the cardholder makes multiple transactions in a month, the coverage will be valid from the date of the first transaction.
Benefits of an insurance policy with an ATM card
- Coverage against accidental death or permanent disability caused due to an accident
- Insurance coverage of Rs.10 lakh
- No additional premium payment required
- Easy activation process
- Coverage for a month from the date of the first transaction in a calendar month
- Multiple transactions can activate the coverage
- No need to visit the bank or fill out any forms to avail the insurance policy
- Availability for both savings and current account holders
How to activate the insurance policy?
Activating the insurance policy is a simple process. The policy is activated automatically when the cardholder makes a minimum transaction of Rs.1000 in a calendar month using their ATM card.
There is no need to visit the bank or fill out any forms to avail of the insurance policy. The policy can be availed by both savings and current account holders.
Types of Accidental Insurance Cover
Almost all banks in India, including private bank HDFC and public sector bank SBI, provide accidental insurance cover to their customers along with their Debit Card.
The amount of insurance cover varies depending on the type of bank and card, ranging from Rs.50,000 to Rs.10 lakh. Some banks even offer accident insurance as an additional benefit.
In case of an accident where the cardholder is admitted to the hospital, the insurance claim can be made by contacting the bank with the relevant documents.
In the unfortunate event of an accidental death, the claim application must include the death certificate and autopsy report. Additionally, some banks also provide ‘Purchase Protection’, which means you can get insurance against fraudulent transactions while shopping.
Maximizing Your Accidental Insurance Cover
To ensure that you maximize your accidental insurance cover, it is essential to use your Debit Card at least once every 30 days prior to the accident or death. Some banks have a longer deadline, ranging from 60 to 90 days. It is advisable to check with your bank to know the specific requirement.
Banks offering Accidental Insurance Cover
SBI Gold (Mastercard/Visa) card provides an accident insurance cover of Rs.2 lakh. For SBI Visa Signature Cardholders, the maximum insurance coverage is Rs.10 lakh.
HDFC, the private banking giant, offers an accidental insurance cover of Rs.5 lakh on their Platinum Debit Card. ICICI Bank provides a cover of Rs.50,000 on Visa Platinum Debit Card, while their Titanium card has a maximum insurance cover of Rs.10 lakh.
What are the exclusions?
While the insurance policy provides coverage against accidental death or permanent disability caused due to an accident, there are certain exclusions. The policy does not cover death or disability caused due to the following:
- Suicide or self-inflicted injury
- War or war-like situations
- Participation in hazardous activities such as adventure sports, racing, or aviation
- Influence of drugs or alcohol
- Pre-existing medical conditions
- Any injury caused while committing a criminal act
- Natural calamities such as earthquakes, floods, or hurricanes.
How do I claim insurance on my ATM card?
How to claim atm card insurance after death? The claimant (s) has to submit the documents as per the Documents Check List for Personal Accident Claim along with Certificate from the Bank’s Branch where the Cardholder’s account is maintained, confirming death of the Cardholder, his Account No.
To claim ATM card insurance after the death of the cardholder, please follow these steps:
- Inform the bank: The first step is to inform the bank where the deceased had an account and an ATM card. You can visit the bank in person or call their customer service center to inform them of the death of the cardholder.
- Submit the required documents: The bank will ask you to provide certain documents such as a copy of the death certificate, identity proof of the nominee or legal heir, a copy of the ATM card, and other relevant documents. Please ensure that you provide all the necessary documents as per the bank’s requirements.
- Claim form: The bank will provide you with a claim form that needs to be filled out by the nominee or legal heir. The form will ask for personal details of the deceased as well as details of the nominee or legal heir.
- Verification: The bank will verify the documents and the claim form. Once the verification is done, the bank will process the claim and pay out the insurance amount.
It’s important to note that the insurance amount and the claiming process may vary depending on the bank and the insurance policy. Therefore, it’s advisable to contact the bank and the insurance company to get complete information about the claiming process.
Getting an insurance policy of Rs.10 lakh with your ATM card is a simple and hassle-free way to secure your future. The policy provides coverage against accidental death or permanent disability caused due to an accident.
The policy is activated when the cardholder makes a minimum transaction of Rs.1000 in a calendar month using their ATM card. There is no need to visit the bank or fill out any forms to avail of the insurance policy. The policy is available for both savings and current account holders.
Frequency Asked Questions (FAQs)
Is the coverage limited to accidental death only?
No, some banks offer coverage for accidental death and disability.
Is there a fee for availing the insurance policy with my ATM card?
No, there is no additional premium payment
Can I get more than one insurance coverage with different banks?
Yes, you can get insurance coverage with multiple banks as long as you meet the eligibility criteria.
What happens if I don't maintain the minimum balance requirement?
The insurance coverage may be terminated if you don't maintain the minimum balance requirement. Make sure to check with your bank for their specific terms and conditions.
What is the coverage amount provided by the insurance policy?
The insurance policy provides coverage of Rs.10 lakh against accidental death or permanent disability caused due to an accident.
Do I need to fill out any forms to avail of the insurance policy?
No, there is no need to visit the bank or fill out any forms to avail of the insurance policy. The policy is activated automatically when the cardholder makes a minimum transaction of Rs.1000 in a calendar month using their ATM card.
What are the exclusions under the insurance policy?
The insurance policy does not provide coverage for death or disability caused due to suicide or self-inflicted injury, war or war-like situations, participation in hazardous activities such as adventure sports, racing, or aviation, influence of drugs or alcohol, pre-existing medical conditions, any injury caused while committing a criminal act, and natural calamities such as earthquakes, floods, or hurricanes.
Can the insurance policy be availed by both savings and current account holders?
Yes, the insurance policy can be availed by both savings and current account holders.