ATM Free Insurance: Get free insurance of Rs 10 lakh, know how to claim

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ATM Free Insurance: As soon as you open an account in the bank, you get an ATM card. This is called a debit card. With this, you can withdraw cash from any ATM of the bank. In today’s digital age, people have started reducing cash transactions. Still, the need for ATM still remains.

Transactions have also become easier through ATM. If you want to buy anything, it can be done easily through ATM. Many types of facilities are also available through ATM. But due to lack of information, people are not able to take advantage of it. Similarly, insurance is also available through ATM without paying any premium. Banks give very little information about this.

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Actually, as soon as the ATM card is issued by the bank, the cardholders get accidental insurance and insurance against untimely death. Most people in the country are unaware of this fact that they also get life insurance cover on debit/ATM cards. According to the website of State Bank of India, Personal Accidental Insurance (Death) Non Air Insurance is provided to the debit card holder as insurance against untimely death.

Free insurance amount on ATM card

If you have used the ATM card of any bank for more than 45 days, then you can avail the benefit of free insurance facility. This includes both accident insurance and life insurance. Now you can claim insurance in both these situations. The amount has been fixed according to the category of the card. SBI gives a cover of 4 lakhs (death on air), 2 lakhs (non-air) to its Gold ATM card holders.

Whereas, it gives a cover of 10 lakhs (death on air), 5 lakhs (non-air) to the Premium card holders. All banks including HDFC Bank, ICICI, Kotak Mahindra Bank provide cover of different amounts on their debit cards. Some debit cards provide free accidental insurance coverage up to Rs 3 crore. This insurance coverage is given for free. No additional documents are asked for by the bank in this.

Debit card transactions are a must

The benefit of insurance is available only when some transactions are done through that debit card within a certain period. This period may vary for different cards. To activate the insurance policy on some ATM cards, the card holder is required to do a transaction at least once in 30 days. On the other hand, some cardholders have to do a transaction once within the last 90 days to activate the insurance coverage.

Nominee gets the claim amount

Customers also get insurance coverage of up to Rs 1 to 2 lakh on RuPay cards issued on accounts opened under the Pradhan Mantri Jan Dhan Yojana. If a debit card holder dies in an accident, his nominee can go to the concerned bank and claim the insurance.

Know how to claim

If an ATM card holder dies in an accident. In such a situation, the nominee of the card holder has to go to the branch of the bank where the account was opened. There, an application has to be submitted for compensation. Along with this, the necessary documents have to be submitted in the bank. After a few days, the nominee gets the insurance claim.

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