Discover the hidden insurance benefits of your debit card. From accidental death to purchase protection, know how your card can offer financial security beyond everyday transactions.
Nowadays, everyone has at least one debit card, although many people believe they are only useful for withdrawing cash and making payments.
However, these cards offer a surprising layer of protection: insurance coverage. Debit cards often come with five types of insurance coverage.
ATM Card Hidden Benefits
Each year, a debit card annual fee is deducted from your account. A portion of this fee is allocated to insurance companies on your behalf.
The insurance coverage can range from ₹50,000 to ₹2 crore, depending on the type of debit card (ATM card) you hold.
Banks offer different card tiers, such as silver, gold, and platinum, with higher tiers generally providing greater insurance coverage.
Types of Debit Card Insurance Benefits
- Accidental Death and Disability: Offers financial support to you or your dependents in case of accidental death or permanent disability.
- Purchase Protection: This policy covers items purchased with your debit card against loss, theft, or damage within a specified period.
- Air Accident Insurance: Provides coverage in case of an air accident, often with higher limits for specific card tiers.
- Lost Card Liability: Protects you from unauthorized transactions if your card is lost or stolen.
- Baggage Insurance covers loss or damage to your checked-in baggage during travel.
How to Claim Your Insurance Benefits of Debit Card
Claiming your debit card’s insurance benefits may require some documentation and paperwork, but getting the financial protection you need is worth it. Here are the general steps to follow:
- Contact your bank to report the incident and request a claim form.
- Fill out the claim form and submit it with the required documents, such as a death certificate or police report.
- Wait for the bank to process your claim and provide the insurance payout.
To file a claim, contact your bank promptly after the incident. You’ll typically need to provide:
- A detailed claim form
- Proof of purchase (for purchase protection)
- Police complaint (for theft or loss)
- Medical certificates (for accidental death or disability)
- Airline documents (for air accident claims)
Specific terms and conditions, including claim timelines, vary by bank and card type.
| Name of the Insurance | ATM Card Insurance |
|---|---|
| SBI | Insurance Cover Available on Personal Banking |
| ATM Card insurance claim form | Download Debit Card insurance claim form |
Maximizing Your Coverage
- Choose the right card: Opt for a card tier that aligns with your needs and budget.
- Regularly review terms: Stay updated on your insurance coverage and any changes in terms.
- Take precautions: Protect your card and personal information to prevent fraud.
While debit card insurance is a valuable benefit, comprehensive insurance coverage for all aspects of life is essential. Consider additional health, life, and home insurance policies for holistic protection.