ATM Card Free Insurance: Nowadays, almost everyone possesses an ATM or debit card from a bank for various financial transactions like withdrawing cash or shopping online. What many people are unaware of is that these cards typically come with complimentary accident insurance coverage of up to Rs 5 lakh. This benefit is offered by most public and private banks in the country at no extra cost. However, due to a lack of awareness, many cardholders are oblivious to this valuable feature and may not know how to claim it.
The extent of insurance coverage provided by an ATM card varies depending on the type of card:
– A standard Classic or RuPay card offers accident insurance coverage of up to Rs 1 lakh.
– A Platinum card provides coverage of up to Rs 2 lakh.
– A Premium or Visa card offers the highest coverage of up to Rs 5 lakh.
If the cardholder meets with an accident resulting in death, their family is entitled to receive the insurance amount.
To benefit from this insurance, there is a crucial requirement known as the “activity period” set by banks. During the last 30 to 90 days (depending on the bank’s policy), the ATM card must have been used for at least one successful financial transaction to be considered active.
In the unfortunate event of an accident, the nominee (heir) of the cardholder must promptly inform the relevant bank branch. The bank will then provide a claim form to be filled out and submitted along with necessary documents. Upon verification of these documents, if everything is in order, the insurance company will transfer the claim amount to the nominee’s account.
When making a claim, specific essential documents must be provided to the bank, including the cardholder’s death certificate, a copy of the police FIR, the post-mortem report, and a valid nominee certificate. Additionally, a photocopy of the deceased’s ATM card and a bank statement from the last 90 days showing the card’s active status must also be submitted.