Few customers are aware of this; experts suggest customers check with their bank what types of insurance policies are offered
Bank-issued debit and credit cards come with individual accident insurance coverage, which few customers are aware of.
Consumer activist T. Sadagopan said he only learned about the insurance coverage through a social media post and a recent advertisement given by a public sector bank on his card offer.
A senior official at the Chennai-based Indian bank said the bank provides insurance coverage for debit cards under the RuPay card program as it only issues RuPay debit cards by default. All variants of credit cards issued by the bank are eligible for insurance coverage, he added. Accidental death and permanent total disability insurance is available to clients. Insurance coverage ranges from 50,000 to 10 lakh depending on the debit and credit card variants, the Indian Bank official said. The personal accident policy covers deaths occurring only as a result of unintentional or non-self-inflicted accidents or accidental injuries, he added.
Sources from HDFC Bank said that insurance coverage depends on the type of relationship the customer has with the bank and that insurance coverage starts from 2 lakh and goes up to ₹ 10 lakh for debit and credit cards.
Mr. Sadagopan said that customers are unaware of these facilities offered and that it is the duty of banks to inform customers. One of the conditions for claiming insurance is that the card must be in use and that claims must be made within a specified time frame.
For example, under the Rupay insurance program, notification of the claim must be made within 90 days of the date of the accident and all supporting documents relating to the claim must be submitted within 60 days of the date of the accident. date of notification. He also said that the cardholder should have made an active transaction (a financial or non-financial transaction) 90 days before the date of the accident.
Experts suggest customers to check with their respective banks the type of insurance offered as well as the procedure and conditions for insurance claim.