ATM Card Insurance: Nowadays almost everyone has an ATM or debit card. Some use it only for withdrawing money, while some use it for online payment. But do you know that your ATM card is not just a medium of transaction, but it is also a security cover.
Yes, you heard it right. Many banks provide life insurance or accidental death cover of Rs 1 lakh to Rs 10 lakh to their ATM card holders. The special thing is that you do not have to pay any extra money for that cover. The problem is that people do not know about this.
Raju was a labourer in a city. He had a savings account in a government bank and was also given an ATM card. But he was never told that this card also came with an accident insurance. No one in his family knew about it either. One day, he died in a road accident and no one told his family that they could get an insurance claim from the bank. By the time the family got to know this, the time to make the claim had passed. This story is not true, but there must be many such stories which are true.
What is the insurance associated with ATM card?
Almost all the major banks of the country such as State Bank of India (SBI), Punjab National Bank (PNB), HDFC Bank (HDFC), ICICI Bank (ICICI), Union Bank (Union Bank), Bank of Baroda (Bank of Baroda) provide accidental death insurance or personal accident cover to their customers along with ATM or debit card. This insurance comes in handy when a person dies in an unfortunate incident.
How much insurance is there on the card? How to know?
As you know that ATM cards have insurance. But how much is it worth, how will you know? The most important thing is that you should get this information from your bank. Such information is also given on the websites of banks. For example, we are telling in detail about the cards of State Bank of India. This information has been taken from the official website of SBI.
State Bank of India offers personal accident insurance cover to cardholders with its various debit cards. This cover is of two types. First, non-air accident cover (road accident etc.), and second, air accident cover (air accident). This insurance is valid only if the cardholder has made at least one financial transaction (withdrawal of money or online purchase) from the card within 90 days preceding the date of the accident. There is one more condition.
1. SBI Gold (MasterCard/VISA)
Non-Air Accident Sum Assured: ₹2 Lakh
Air Accident Sum Assured: ₹4 Lakh
2. SBI Platinum (MasterCard/VISA)
Non-Air Accident Sum Assured: ₹5 Lakh
Air Accident Sum Assured: ₹10 Lakh
3. SBI Pride (Business Debit Card – MasterCard/VISA)
Non-Air Accident Sum Assured: ₹2 Lakh
Air Accident Sum Assured: ₹4 Lakh
4. SBI Premium (Business Debit Card – MasterCard/VISA)
Non-Air Accident Sum Assured: ₹5 Lakh
Air Accident Sum Assured: ₹10 Lakh
5. SBI VISA Signature / MasterCard World Debit Card
Non-Air Accident Sum Assured: ₹10 Lakh
Air Accident Sum Assured: ₹20 Lakh
This information has been taken from the bank’s website on May 1, 2025.
Under what conditions is the insurance cover available?
This insurance is activated only when the cardholder has used that ATM card in the last 90 days, such as withdrawing money from an ATM or making a purchase on a POS machine. The second condition is that the cardholder’s death is due to an accident and not due to any disease. The third and final condition is that the insurance claim should be filed in the bank within 90 days of death. If even one of these conditions is not met, then the claim is not received.
