Debit Card Insurance: Most of the people use debit card to withdraw money from ATM or do transactions. Do you know that your debit card also provides you free insurance cover.
New Delhi. Nowadays most people invest in insurance policies. Insurance gives you security cover which provides financial assistance in case of any untoward incident. However, you usually get the benefits of any insurance policy only when you pay the premium for it. But do you know that insurance can also be available for free. This is true. Actually, your debit card also provides you free insurance cover.
Some debit cards offer free accidental insurance coverage up to Rs 3 crore. This insurance coverage is given free of cost and neither any premium is charged from the debit card holder nor any additional document is asked by the banks.
Transactions will have to be done through debit card within a certain period.
There are certain terms and conditions for free accidental insurance coverage on debit cards. The most important of these is that the cardholder has to make certain transactions through that debit card within a certain period.
The criteria for making eligible transactions vary from bank to bank.
The criteria for carrying out eligible transactions to qualify for free accidental insurance coverage varies across banks. For example, HDFC Bank Millennia Credit Card offers free insurance coverage of Rs 5 lakh for domestic travel and Rs 1 crore for international air travel. To activate the insurance policy on this card, the card holder has to do at least one transaction in 30 days. Kotak Mahindra Bank requires Classic Debit Card holders to complete at least 2 transactions of minimum Rs 500 within the last 30 days to be eligible for the free insurance coverage. Similarly, DBS Bank India Infinity Debit Cardholders will have to make a transaction within the last 90 days to activate the insurance coverage.
Which transactions will be eligible for insurance coverage?
Prashant Joshi, MD and head of consumer banking group, DBS Bank, told ETNow that UPI transactions are generally not eligible for insurance coverage. However, Point of Sale (POS) transactions or e-commerce online transactions are eligible for insurance coverage.
