Many major banks in the country offer complimentary insurance on their debit cards to their customers. These include names like State Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and DBC Bank India.

People often use their debit cards only for ATM cash withdrawals or online shopping. However, few people know that many banks also offer free insurance coverage with their debit cards. This coverage can go up to Rs 10 lakh in some cases. Importantly, there's no separate premium required. However, this feature isn't always active. It comes with certain conditions. If these conditions aren't met, you won't be able to avail the insurance benefits when needed.

Which banks' cards offer this feature?

Many major banks in the country offer complimentary insurance on their debit cards to their customers. These include names like State Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and DBC Bank India. This insurance is usually covered under a group insurance policy. This means that each cardholder is not issued a separate policy number. This cover can include features like personal accident, air accident, card fraud, and in some cases, purchase protection. The free insurance benefit is only available if your debit card is active. Many banks require a transaction to be made using the card within a specified timeframe before the accident. In some cases, a certain number of POS or online transactions are required within the last 60 days. Some banks require at least one transaction within 90 days. If the card has not been used for a long time, the insurance cover will not be applicable. Therefore, it is important to continue paying for daily expenses like electricity bills, mobile recharges, or petrol using your debit card to keep it active.

How much insurance cover is available?

The insurance amount depends on your card category. A normal or classic card can provide coverage of up to ₹1 lakh. This limit can range from ₹2 lakh to ₹5 lakh for platinum or premium cards. Some high-end cards can cover up to ₹10 lakh. Therefore, be sure to check with your bank about your card category and the rules associated with it.

How is a claim filed?

If the cardholder meets with an accident, the nominee must inform the bank within a stipulated time. Typically, filing a claim within 30 to 60 days is considered mandatory, although the deadline may vary by bank. Claim filing typically requires a properly completed claim form, a death certificate, a post-mortem report, an FIR in case of an accident, the nominee's KYC documents, and bank statements from the past few months proving the card was active. If a nominee is not registered, a legal heir certificate may also be required.