Bank-issued debit and credit cards include free personal accident insurance, which many customers are unaware of.
Sadagopan, a consumer activist, stated that he learned about the insurance coverage only through a social media post and a recent advertisement by a public sector bank on their card offering.
According to a senior official at Chennai-based Indian Bank, the bank provides insurance coverage for debit cards under the RuPay card programme because it only issues RuPay Debit cards by default. All credit card variants issued by the bank are covered by insurance, he added. Customers can purchase insurance for accidental death and permanent total disability. According to an Indian Bank official, insurance coverage ranges from 50,000 to 10 lakh based on card variants under debit and credit cards. He added that the personal accident policy only covers death caused by accidents or accidental injuries that are not intentional or self-inflicted.
According to HDFC Bank sources, insurance coverage varies depending on the customer's relationship with the bank, and insurance coverage ranges from 2 lakh to 10 lakh for both debit and credit cards.
Customers, according to Mr. Sadagopan, are unaware of such services, and it is the banks' responsibility to inform them. One of the requirements for claiming the insurance is that the card be in active use and that the claims be made within a certain time frame.
For example, under the Rupay insurance programme, claim notification must be made within 90 days of the date of the accident, and all supporting documents must be submitted within 60 days of the date of notification. It also stated that the cardholder must have made an active transaction (either financial or non-financial) 90 days prior to the date of the accident.
Experts advise customers to inquire with their respective banks about the type of insurance offered as well as the procedure and conditions for filing an insurance claim.
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