ATM Card Insurance is a very important and less discussed facility in today’s time, about which very few people have the right information. Nowadays everyone has an ATM or debit card, which they use to withdraw money or make online payments. But very few people know that their card is not only a means of transaction but also provides a free insurance shield! Most banks provide accidental insurance of ₹ 1 lakh to ₹ 20 lakh to their ATM cardholders without any additional premium.
Support in an accident, Don’t let you also remain deprived due to lack of information. We can get an idea of how important this facility can be when an unpleasant accident occurs and the family needs some support to compensate for it. Through the fictional story of a labourer Mohan, we can understand how a person and his family are deprived of this benefit due to lack of information.
This is not the only story, but there can be thousands of such examples across the country where this insurance benefit available with the ATM card could not be availed. Awareness is the first key to getting this precious security cover.
Security insurance available with the ATM card
Almost all major banks in India like State Bank of India (SBI), HDFC Bank, ICICI Bank, Punjab National Bank (PNB), Union Bank, and Bank of Baroda offer accidental death insurance or personal accident cover to their customers with ATM card or debit card. This insurance is extremely helpful when the cardholder dies in an accident. It acts like as the financial safety net for precious your family.
How much insurance amount is available
Every bank and every debit card has a different insurance amount. The best way to get information about this amount is to visit your bank’s website or visit the branch and get the information. For example, the State Bank of India (SBI) offers the following sum insured on its various debit cards:
Card Type Non-air accident sum insured Air accident insurance amount
SBI Gold Card ₹ 2 lakh ₹ 4 lakh
SBI Platinum Card ₹ 5 lakh ₹ 10 lakh
SBI Pride Business Card ₹ 2 lakh ₹ 4 lakh
SBI Premium Business Card ₹ 5 lakh ₹ 10 lakh
SBI Signature/World Debit Card ₹ 10 lakh ₹ 20 lakh
This information is retrieved from the official website of State Bank on 1 May 2025 It is always best to contact your bank to know the insurance amount as per your specific card category.
Know the important conditions
This insurance is not activated automatically. There are some important conditions for this which have to be fulfilled:
Transaction condition: The insurance is applicable only if the cardholder has made any financial transaction with that ATM card within 90 days from the date of accident. Such as – cash withdrawal from ATM or online shopping.
Cause of death: The death of the cardholder should be due to an accident, not due to any disease.
Claim timeline: It is mandatory to make an insurance claim to the bank within a maximum of 90 days after the accident. If any one of these conditions is not met, the claim of the insurance amount is not available. Therefore, it is extremely important to keep these conditions in mind and take immediate action if required so that you can avail the benefits of this security cover. It provides priceless protection for you and your family.