ATM Card Insurance: Usually many people have a debit card. This is called ATM card. Even though its use has reduced due to increasing digitalization, it is still very much needed. This debit card also provides free insurance cover. No premium has to be paid in this. These include both accident insurance and life insurance.
There are very few people today who do not use ATM cards. 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 transactions have also become easier. If you want to buy anything, it can be done easily through ATM. ATM also provides many facilities. But due to lack of information, people are not able to avail its benefits. Similarly, insurance is also available through ATM without paying premium.
As soon as the ATM card is issued by the bank, the cardholders get accidental insurance and insurance against untimely death. Most people in the country are unaware of the fact that they also get life insurance cover on debit/ATM cards. According to the website of State Bank of India, Personal Accidental Insurance (Death) Non Air Insurance Debit Card holders are provided insurance against untimely death.
Free insurance amount on ATM card
If you have used the ATM card of any bank for more than 45 days, then you can avail free insurance facility. This includes both accident insurance and life insurance. Now you can claim insurance in both these situations. The amount has been fixed according to the category of the card. SBI gives a cover of 4 lakhs (death on air), 2 lakhs (non-air) to its Gold ATM card holders.
Whereas, it gives a cover of 10 lakhs (death on air), 5 lakhs (non-air) to the Premium card holders. All the banks including HDFC Bank, ICICI, Kotak Mahindra Bank provide cover of different amounts on their debit cards. Some debit cards provide free accidental insurance coverage up to Rs 3 crore. This insurance coverage is given for free. No additional documents are asked for by the bank in this.
Debit card transactions are a must
The benefit of insurance is available only when some transactions are done through that debit card within a certain period. This period may vary for different cards. To activate the insurance policy on some ATM cards, the card holder is required to do a transaction at least once in 30 days. On the other hand, some cardholders have to do a transaction once within the last 90 days to activate the insurance coverage.