Many banks provide free insurance coverage with their debit cards.
Most State Bank of India (SBI) debit cards, except the basic variant, come with complimentary insurance coverage. Personal accident insurance, purchase protection, and baggage loss insurance are all included in the package.
The majority of cardholders, however, seem to be unaware of these facts.
Incidentally, SBI is not the only bank to offer such kind of insurance coverage. Personal accidental insurance typically covers the debit cardholder for non-air accidental death, to the extent applicable to the type of debit card variant held. They usually start at Rs. 2 lakh and extend up to Rs. 10 lakh in terms of coverage.
Some banks also provide accidental death cover. Kotak Mahindra Bank, for instance, offers personal accidental death cover of up to Rs. 25 lakh on Kotak debit cards. There is one condition though. There must be at least one use of the card, such as an ATM transaction, a point of sale transaction, or an e-commerce purchase, in the past 90 days from the accident date in order to activate the insurance cover.
SBI also offers separate air accidental death insurance based on the type of the debit card variant held. It also offers baggage loss during air travel (domestic and international) in addition to the cover provided by the airline. However, the conditions are that the air ticket should have been purchased using a debit card, and the card should have been used at least once within 90 days from the date of accident.
SBI also covers any loss or damage to goods purchased with SBI debit cards within 90 days of purchase, up to Rs. 1 lakh (excluding perishables, jewellery, and precious stones). As part of the SBI debit card policy, the purchases must have been made with eligible Debit Card variants.
Kotak Mahindra Bank covers up to Rs. 5 lakh in this category, i.e., loss or damage to good. Kotak Mahindra Bank also provides a lost card liability coverage that covers transactions up to Rs. 6 lakh at merchant outlets and online portals using your lost or stolen cards.
All Rupay card holders except Classic RuPay Card are also eligible for free accidental insurance coverage starting up to Rs. 1 lakh. TATA AIG and New India Assurance provide the insurance coverage. The claim should be notified within 90 days of the accident.
HDFC Bank’s accidental insurance coverage begins and ends at Rs. 5 lakh, except for air accidental insurance, which goes up to Rs. 1 crore.