Claim Life Insurance on Debit Cards

Claiming Life Insurance on Debit Cards: What You Need to Know

Many banks in India, including Kotak Mahindra Bank, Development Bank of Singapore (DBS) India, HDFC Bank, State Bank of India (SBI), and ICICI Bank, offer complimentary life insurance on debit cards, provided certain conditions are met. Here’s how this insurance works and how nominees can claim it in case of the cardholder’s death.

Complimentary Life Insurance on Debit Cards

Did you know that your debit card might come with free life insurance cover? Many bank account holders are unaware that several banks offer this complimentary benefit. However, the insurance cover is subject to specific conditions. For instance, the debit card holder must have made at least one specific type of transaction within a specified period. Understanding and meeting these conditions is crucial to ensure eligibility for the insurance cover.

Conditions for Eligibility

The complimentary life insurance provided with debit cards is usually a group life insurance product. Puneet Kapoor, President-Products, Alternate Channels, and Customer Experience Delivery at Kotak Mahindra Bank, explains: “Insurance Policies covering debit card usage are usually in the nature of group insurance policy and provide coverage for personal accident, purchase protection, air accident, card fraud, etc. Since these are Group Policies, independent policy numbers at a cardholder level are not available.”

Key Conditions to Fulfill

One critical condition for maintaining the insurance cover is conducting a particular type of transaction within a specified timeframe. Here are the conditions for some major banks:

• Kotak Mahindra Bank: Gold and Platinum debit cardholders must conduct a minimum of 6 point-of-sale (POS) or e-commerce transactions of Rs 500 each in the last 60 days.
• DBS Bank: Infinite debit cardholders must conduct at least one POS or e-commerce transaction in the last 90 days.
• HDFC Bank: Debit card customers must make at least one POS or payment gateway transaction in the last 30 days.

Ensuring Eligibility

If you hold a debit card, check if it includes a life insurance cover and understand the conditions to maintain it. Ensure you fulfill these conditions regularly. For example, you can pay a monthly utility bill or buy fuel using your debit card to keep your insurance cover active.

Claiming Insurance on Debit Cards

The process of claiming insurance on debit cards can be complex due to the absence of a traditional policy number. Here’s how nominees can file a claim:

1. Approach the Bank: The nominee or claimant should contact the bank within a specified period (ideally within 60 days of the incident, though this may vary by bank) with the required documents.
2. Submit Required Documents: The documents typically include the claim form, the cardholder’s death certificate, and the nominee’s KYC details. Prashant Joshi, MD and Head – Consumer Banking Group, DBS Bank India, says, “In the unfortunate event of the cardholder’s death, the nominee is required to submit the claim form, the customer’s death certificate, certain documents, and the KYC details of the nominee to claim the personal accident insurance.”
3. Electronic Submission: Some banks allow electronic submission of these documents. Nominees can provide an intimation to the bank’s call center and submit the required documents via email.

Conclusion

Complimentary life insurance on debit cards can be a valuable benefit, but it’s essential to understand and meet the eligibility conditions. Regularly conducting specific transactions with your debit card ensures you maintain the insurance cover. In the unfortunate event of the cardholder’s death, nominees should promptly approach the bank with the necessary documents to file a claim. By staying informed and proactive, you can effectively utilize the insurance benefits offered with your debit card.

Salman and Govinda Iconic Partnership