How to Claim Insurance on Debit Card: Eligibility, Coverage & Steps Explained
Many Indian banks, including HDFC, ICICI, SBI, Kotak Mahindra, and DBS, offer complimentary life insurance cover to debit card holders through group insurance policies. These covers often include personal accident, air accident, purchase protection, and card fraud. However, eligibility typically requires fulfilling specific conditions, like making a qualifying transaction within a set period. Since these are group policies, individual policy numbers are not issued to cardholders. Ensure you meet the conditions to activate and maintain the coverage.
Learn how to claim insurance benefits from your debit card, including eligibility, required documents, and steps to follow for a successful claim.
Challenges of Filing a Debit Card Insurance Claim
Nominees must rely on the debit card’s insurance benefits, which are linked directly to the cardholders account. The process typically involves submitting required documents, such as proof of death, KYC details of the nominee, and transaction records, to the bank. It is essential to contact the bank for guidance on the claim process and to confirm the cardholders eligibility for the insurance benefits.
Here is a tables showing different banks offers Debit card insurance covers with various kind of cards.
Free Insurance Cover on Debit Cards
State Bank of India
| Debit Card Variant | Personal Accident Insurance Cover – Non-Air (Death Only) | Personal Air Accident Insurance Cover (Death Only) |
|---|---|---|
| SBI Gold (MasterCard/VISA) | ₹2,00,000 | ₹4,00,000 |
| SBI Platinum (MasterCard/VISA) | ₹5,00,000 | ₹10,00,000 |
| SBI Pride (Business Debit) (MasterCard/VISA) | ₹2,00,000 | ₹4,00,000 |
| SBI Premium (Business Debit) (MasterCard/VISA) | ₹5,00,000 | ₹10,00,000 |
| SBI VISA Signature/MasterCard Debit Card | ₹10,00,000 | ₹20,00,000 |
Notes:
- Insurance coverage is applicable only in the event of death.
- Non-Air Accident covers general accidents, while Air Accident specifically covers incidents occurring during air travel.
- Terms and conditions may vary; ensure you meet eligibility criteria and maintain card activity as per bank requirements.
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HDFC Bank
To successfully make a claim under Personal Accidental Death Insurance linked to a debit card, the cardholder must have conducted at least one transaction using their debit card prior to the incident.
| Coverage Type | Platinum Debit Card | Jet Privilege HDFC Bank World Debit Card | Times Points/Millennia/RuPay Premium | Business Debit Card | Rewards/Gold/Woman’s Debit Card | Eligibility Criteria |
|---|---|---|---|---|---|---|
| Free Accidental Base Cover (Airline/Rail/Road) | ₹5 Lakhs | ₹5 Lakhs | ₹5 Lakhs | ₹5 Lakhs | ₹5 Lakhs | One shopping transaction (POS/PG) in the last 30 days. |
| Accelerated Insurance Cover (Airline/Rail/Road) | Base Cover ₹5 Lakhs + Accelerated Cover up to ₹5 Lakhs (₹7 Lakhs for HNW Platinum, based on spending). | Base Cover ₹5 Lakhs + Accelerated Cover up to ₹20 Lakhs (based on spending). | Base Cover ₹5 Lakhs + Accelerated Cover up to ₹5 Lakhs (based on spending). | Base Cover ₹5 Lakhs + Accelerated Cover up to ₹5 Lakhs (based on spending). | N/A | Based on spending in the last 12 months. |
| Accidental Air Insurance Cover (International Travel) | ₹3 Crore | ₹1 Crore | ₹1 Crore | ₹1 Crore | ₹25 Lakhs | Valid only if international air tickets are purchased using the HDFC Bank Debit Card***. |
| Maximum Cover | ₹3 Crore | ₹1 Crore | ₹1 Crore | ₹1 Crore | ₹25 Lakhs |
Notes:
- Eligibility Criteria: Ensure compliance with specific spending and transaction requirements to maintain coverage.
- Accelerated Insurance Cover: Available based on cardholder spending over a defined period, with variations for High Net Worth (HNW) cardholders.
- International Travel Cover: Applicable only for air tickets bought using the respective HDFC debit card.
- Always verify terms and conditions with the bank for the latest updates and coverage details.
* For International travel outside India.
ICICI Bank
| Debit Card Variant | Annual Fees | Insurance cover limit |
| Regular | Rs. 150 | Rs. 50000 (air) |
| Silver | Rs. 150 | Rs. 50000 (air) |
| Gold | Nil | Rs. 5 Lakhs (non air) and RS. 30lakhs (air) |
Source: Bank’s website
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Critical Conditions for Making an Insurance Claim on a Debit Card
When claiming insurance benefits tied to a debit card, certain usage conditions often need to be fulfilled. These conditions vary between banks and typically involve completing a specific type of transaction within a stipulated time frame before the incident.
Examples of Bank-Specific Conditions:
- Kotak Mahindra Bank:
- Gold and Platinum debit cardholders must complete at least six point-of-sale (POS) or e-commerce transactions of ₹500 each within the last 60 days.
- DBS Bank:
- Infinite debit cardholders must perform at least one POS or e-commerce transaction in the last 90 days.
- HDFC Bank:
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- Debit card customers must conduct at least one POS or payment gateway transaction within a specified period before the claim.
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Steps to Ensure Eligibility:
- Verify Coverage:
- Confirm if your debit card includes a life insurance benefit and understand the coverage details.
- Understand the Conditions:
- Review your bank’s specific requirements for maintaining insurance eligibility, such as the type and frequency of transactions.
- Plan Regular Transactions:
- Fulfill the conditions by planning routine expenses, such as paying utility bills, purchasing fuel, or shopping for essentials, using your debit card.
- Track Your Transactions:
- Keep track of qualifying transactions and their amounts to ensure compliance with the bank’s requirements.
By meeting these critical conditions, you can maintain your debit card’s free insurance benefits and ensure they remain active in case of need.
How to File an Insurance Claim on a Debit Card
Filing an insurance claim on a debit card involves following specific steps based on the bank’s terms and conditions. Here’s a general guide:
- Timely Notification:
- Notify the bank about the incident as soon as possible, ideally within the specified time frame (e.g., 60 days). Different banks may have different deadlines, so confirm with your bank.
- Prepare Required Documents:
- Collect all necessary documents such as:
- Completed claim form.
- Death certificate of the cardholder.
- Supporting documents related to the incident (e.g., FIR, hospital records, postmortem report, or other relevant evidence).
- Nominee’s KYC documents (e.g., ID proof, address proof).
- Collect all necessary documents such as:
- Submission Process:
- Physical Submission: Visit the bank branch and submit the required documents in person.
- Electronic Submission: Some banks allow documents to be submitted via email or through their online portals. You may also notify the bank’s customer care center for guidance on electronic submission.
- Verification and Processing:
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- The bank will verify the submitted documents and process the claim as per the policy terms.
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Tips:
- Always keep copies of all documents submitted.
- Contact your bank’s customer care or visit their website to understand specific procedures and timelines.
- Ensure compliance with the bank’s requirements to avoid delays or rejection of your claim.
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Documents Required to File an Insurance Claim on a Debit Card
Here’s a comprehensive list of documents typically needed to file an insurance claim linked to a debit card. Note that additional documents may be requested depending on the circumstances of the claim:
-
- Nominee’s Contact Details: Including address and phone number.
- Completed Claim Form: A duly filled and signed insurance claim form provided by the bank or insurer.
- Original Death Certificate: Issued by a recognized authority.
- Postmortem Report: A complete postmortem report, if applicable.
- FIR or Panchnama: For accident-related claims, an FIR, inquest Panchnama, or spot Panchnama is required. Additionally:
- Photographs of the accident site and the involved vehicle.
- Newspaper cuttings if the incident was reported in local media.
- Hospitalization Records: If the cardholder passed away during treatment, provide hospitalization documents and an admission summary.
- Proof of Income: Recent salary slips or proof of the deceased’s business.
- Driving License: If the cardholder was driving at the time of the incident.
Additional Requirements:
- Translation of Documents: Any documents in a vernacular language must be translated into English or the official language and notarized.
- Legal Heir Certificate: If no nominee was assigned, a legal heir certificate must be submitted to the bank.
Make sure to contact your bank or insurance provider to confirm the specific documents required for your case.
While many Indian banks offer complimentary life insurance cover with their debit cards, it is essential for cardholders and nominees to understand the specific eligibility criteria and conditions required to activate and maintain this coverage. Ensuring that transactions are made within the stipulated time frames and submitting the necessary documents promptly will help avoid complications when filing a claim. Always verify the details with your bank to ensure you meet all requirements, and keep track of all transactions to maintain eligibility for insurance benefits.
Disclaimer: The information provided in this article is for general informational purposes only. It is not intended as financial or legal advice. Please consult your bank or insurance provider for specific terms, conditions, and eligibility requirements regarding debit card insurance coverage and claims.