For many years, the family system in India was traditionally centered around the head of the family, who was responsible for providing for the entire family.
However, if the head of the family unexpectedly passes away, the family is left without direction. Many insurance companies offer special insurance schemes to provide support in such situations.
Additionally, it’s important to note that having a bank account has become essential for everyone. Many people are unaware that their debit card comes with insurance through their bank account. Let’s delve into the details of debit card insurance.
Most people have one or two bank debit cards, which are commonly used for ATM withdrawals. Understanding the benefits of your debit card is essential.
Many banks offer debit card users free life insurance to protect them against unfortunate incidents or fraud.
Most banks allow family members of the debit card user to claim insurance in the event of the cardholder’s death.
The coverage amount varies among banks. Some offer Rs. 4 to Rs. 10 lakh in case of death due to a road accident, while others provide life insurance coverage up to Rs. 3 crore.
It is crucial to empower yourself by carefully reviewing the conditions for life insurance claims set by your bank. Each bank has its own set of conditions, so it is advisable to check these details with your bank when obtaining a debit card. Understanding these terms will give you the knowledge and confidence to make informed decisions.
For instance, if you have an SBI Debit Card, the bank offers varying coverage options such as Gold and Premium. In the event of the cardholder’s death in an accident, their family may receive coverage ranging from Rs. 4 to 10 lakhs.
Different banks offer varying coverage amounts, such as ICICI, which provides insurance claims ranging from Rs.30 thousand to Rs.30 lakhs. HDFC cards cover Rs. 5 lakh to Rs. 3 crores, while Kotak Mahindra Bank offers coverage up to 50 lakhs.
It’s important to note that banks impose a time limit for making these claims, so it’s crucial to be proactive and aware of the claim-related conditions. Taking timely action can make a significant difference in the outcome of your claim.
To file an insurance claim received on a debit card, visit the bank branch, gather the necessary card details, and submit the claim according to the bank’s terms and conditions.
By registering a nominee, the nominee becomes the primary claimant. Additionally, obtaining KYC is essential for making a claim. The cardholder must submit the death certificate and KYC-related documents to claim personal accident insurance.