All About Debit Cards and Free Insurance Coverage

A few types of debit cards from most banking institutions are known to provide free accidental insurance coverage, which is generally up to Rs 3 crore in some cases. This insurance coverage is provided for free and involves no premium charges from the debit cardholder and one doesn’t need to submit any documents to banks.

Notably, this is a group insurance policy, so independent policy numbers at a cardholder level are unavailable.

Banks that provide free accidental insurance coverage on select debit card variants normally do so under certain terms and conditions. For instance, the cardholder should have initiated certain transaction(s) using that specific debit card within a certain timeframe, which is generally within 30 days. This is one of the important terms and conditions and tends to vary from bank to bank, though.

A few certain specific transactions are eligible for free insurance coverage on debit cards. For example, Unified Payments Interface (UPI) transactions are not eligible for insurance coverage, while point-of-sale (PoS) and e-commerce online transactions qualify in this regard.

The requirement for specific documents tends to vary from bank to bank. However, a list of common documents which is sought by most banks is as follows:

Contact details of the nominee (contact person name, contact number, address), duly completed claim form, original death Certificate, and complete post-mortem report. Then only for accident cases a First Information Report (FIR) or Panchnama or Inquest Panchnama is required. Also, in case it is available, then spot Panchnama along with a photo of the accident spot and vehicle involved in the mishap is required, as details of the debit card, which had free insurance cover.

In case the accident was reported in the media or newspaper, then clippings of the same must be provided. In case the cardholder had died on the spot, then the death certificate must have stated the medical cause.

For cases where the cardholder had died in the hospital while undergoing treatment, then the hospitalization papers and admission summary are needed. In cases where the cardholder has not updated the nominee details with the bank, then a legal heir certificate is needed, too.

In addition, a salary slip or business incorporation certificate, in case applicable, is needed. Besides, a driving licence is required if the debit cardholder drives a vehicle. Finally, in case the documents are in vernacular language, appropriate translation of documents is required to be undertaken and made notarized.