Coverage on Debit Card Insurance

Debit Card Insurance

Most people in the country are not aware of debit card insurance, they simply use their ATM/debit card for payment purposes only. As a result the number of persons who benefit from debit card insurance is low.

There are other benefits offered by the bank debit card but the most important benefit is debit card insurance. As soon as the bank issues the debit card, your accidental insurance becomes activated.

Almost all banks provide the ATM/debit card within 15 days of opening an account. However, people generally use it for online payments only due to a lack of financial knowledge. Therefore, in this article, we will discuss how to claim on ATM/debit card insurance.

It’s now clear that one receives insurance cover with the ATM or debit card. However, it is important to ask your bank about the coverage amount and other available services and benefits.

How Much Coverage you get on Debit Card Insurance

It totally depends on the type of card one has. The Regular Master Card may cover Rs.50,000, Platinum Master Card Rs.5,00,000, Classic Card may covers Rs.1,00,000, Platinum Card may cover Rs.2,00,000, and Visa Card up to Rs.2,00,000

It is also important to understand that if the card in not used then one might not be eligible for the debit card insurance. One has to use the ATM card for at least for 45 days to claim the debit card insurance, the duration of using the card also depends on the category of the debit card. The insurance claim is applicable only if the ATM/Debit Card is at least once used in last 90 days from the date of accident, for any kind of online transaction like bill payment, shopping etc.

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Procedure to claim

Contact the bank that issued the card.

Some on them have a separate claims department otherwise customer care department is always there or visit the particular branch where your account is.

Explain the complete incident, including the date, place, and time.

Fill up the debit card insurance claim form. If you are still unable to fill out the form then ask the bank staff to assist you.

Submit the required documents for the claim such as a copy of the details of nominee, police FIR, death certificate, medical report stating the cause of death and certificate of disability, if applicable.

Once the bank has verified all the documents to its satisfaction then they will soon release the applicable debit card insurance amount in the name of the registered nominee of the deceased.

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Coverage in Case of Disability and Death

If one lose his both hands and both legs then they may get the coverage of Rs.1, 00,000.

In case of death the it may cover Rs.50,000 to Rs.5,00,000 depending on your card category.

No Debit Card Insurance Claims on Multiple ATM Cards

If one has more than one card from the same bank or from other banks doesn’t mean that they can claim insurance on multiple debit cards and from all the banks.

Who is Nominee in Insurance?

A nominee is chosen to receive the insurance claim amount after the policyholder. This selected person is one who may extend beyond immediate family and entitled to claim the death benefit.

If minors are designated as nominees then a guardian is required to manage the claim and receive the benefits until they reach adulthood.

So, there must be a known reliable guardian. Nominees are not restricted to family members only your friends or relatives can also be chosen.

These nominees who are not your family members receive the death benefit as custodians while legal beneficiary may assert their claim.

 It is also possible to designate multiple nominees to allocate the benefit of debit card insurance among all family members with the option to allot specific percentages.

Nominees can be changed at any time before policy maturity with the last appointed nominee being eligible to receive the claim.

In the absence of a nominee or if the appointed nominee has passed away then all the death benefits are directed to legal beneficiaries or certificate holder appointed by a court.

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Conclusion

We read how to nominate beneficiaries in insurance policies which is very important for policyholders. The Insurance Laws (Amendment) Act of 2015 provides flexibility in choosing nominees beyond immediate family members. Whether naming minors or selecting non family members. It is important to consider the implications and appoint a reliable guardian if needed. The option to name multiple nominees allows for personalized distribution of benefits among loved ones. Regular updates of nominee details are necessary to match with changing situations. Debit card insurance provides peace of mind and financial security for policyholders and their families.

FAQs

Question: What is credit card insurance?

Answer:

Credit card insurance also saves from the risk against frauds like identity theft, travel incidents, and sometimes purchase protection. It helps cardholders avoid financial losses from unexpected things.

Question: What is debit card insurance?

Answer:

Debit card insurance functions same as credit card insurance but its main focus is on debit card transactions. It protects against accidental death or disability unauthorized transactions, ATM theft, and occasionally accidental death or disability.

Question: Is debit card insurance compulsory for every bank account holder in India?

Answer: Debit card insurance is not compulsory for all bank account holders in India. While some banks may offer optional insurance coverage for debit card transactions, it’s upon the willingness of the once account holder whether to take it or not. You get the option to check and uncheck box while filling up application form.

Question: How can I check if my debit card has insurance?

Answer: To find out if your debit card is insured or not check your bank’s terms or contact customer service. They will provide details on debit card insurance and how to use it.

Question: Can I get additional insurance for my debit card in India?

Answer: Some insurance providers in India offer optional extra coverage for debit cards. This additional protection may include better security for specific risks or added benefits. You can inquire with your bank or insurance provider to know good options.

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