Does your debit card offer ₹2 lakh insurance coverage? Few people are aware of this benefit.

Debit Card: With the rising popularity of UPI, most people have reduced their use of debit cards. However, debit cards offer more than just transaction capabilities; they also provide important features like accident insurance.

Debit Card: Nowadays, almost everyone has a bank account and a debit card. The surge in digital transactions has led most people to use UPI, resulting in a significant decline in debit card usage. Many believe debit cards are solely for withdrawing cash from ATMs, but few realize they also come with accident insurance coverage.

Insurance Cover

People today hold various types of debit cards, such as Visa, RuPay, and MasterCard. Few are aware that these cards include accidental insurance benefits. The insurance amount depends on the card type and variant. Standard cards may offer coverage of up to ₹2 lakh, while premium cards can provide coverage amounting to several lakh rupees.

Why Using the Card Matters

Few people know that, in many cases, claiming insurance requires the debit card to have been used within a specific timeframe—usually up to 90 days. However, many people stop using their debit cards after linking them to UPI. Consequently, they may face difficulties claiming insurance when the need arises.

Not Limited to Cash Withdrawals

Debit card usage is not restricted to ATM cash withdrawals. You can also check your balance, generate mini-statements, and access other ATM services. In many instances, these activities are also recognized as valid card usage.

Financial Support

The card can serve as a source of financial support for the family. If a cardholder dies in an accident, their family or nominee may receive the insurance payout, provided the eligibility criteria are met. Therefore, make sure you are aware of the insurance cover linked to your debit card and the associated terms and conditions.

Checking eligibility is essential.

Terms and conditions vary across different banks and cards. Hence, contact your bank to find out the extent of the insurance cover provided with your debit card and the rules applicable for making a claim.