Debit Card Insurance: Is your debit card only used for payments? Many cards come with free insurance cover. Learn how to avail this benefit and the conditions under which it applies.

Debit Card Insurance: When someone opens a bank account, a debit card is issued along with a passbook and checkbook. Often, we use debit cards only for cash withdrawals or online payments. But many people don't know that this card also provides a safety cover. Banks add insurance benefits to some cards without paying a separate premium.

In many cases, this cover can reach lakhs of rupees. The only problem is that most people are unaware of this. If you use a card daily, it's important to know how much insurance you get with your card and how it works.

Which banks offer insurance cover on their debit cards?

Many major banks in the country offer complimentary insurance with their debit cards. For example, ICICI Bank, SBI Bank, and HDFC Bank offer group insurance coverage on different card categories. This can include personal accident cover, air accident cover, card loss or fraud protection, and sometimes even purchase protection. This coverage is automatically added, meaning there's no need to enter a separate policy number or pay a premium. However, terms and conditions may vary from bank to bank, so please check with your bank for details.

How much insurance cover is available?

The insurance amount depends on your debit card category. Basic cards typically offer coverage of around ₹1 lakh. Platinum or premium cards can offer this limit, ranging from ₹2 lakh to ₹5 lakh. Some high-end cards can even offer coverage of up to ₹10 lakh. However, there's an important condition: the card must be active. Many banks have a rule that requires at least one transaction in the last 60 or 90 days. If the card is not used, the insurance benefit will not be applicable.

What is the claim process?

If the cardholder is involved in an accident, the nominee must notify the bank within a stipulated time. Typically, filing a claim within 30 to 60 days requires submitting a claim form, death certificate, post-mortem report, FIR, if any, and the nominee's KYC documents. A bank statement may also be requested to prove that the card was active.