Those withdrawing cash from ATM get 10 lakh insurance for free, this is how they can avail of the benefit
Today's era has become digital. People are using UPI more than cash, but sometimes the habit of withdrawing cash from an ATM proves beneficial. You will be surprised to know that banks do not provide the facility of free insurance on debit cards. Different banks provide different amounts as claims on ATM cards. In today's story, we are going to give you detailed information about this.
Cover starts as soon as you get the ATM card
As soon as the bank issues a debit/ATM card to a customer, the customer gets insurance against an accident or untimely death. According to the State Bank of India website, Personal Accidental Insurance (Death) provides cover against untimely death to the Non-Air Bima Debit Cardholder.
As we said the insurance cover depends on different cards. If someone has an SBI Gold (MasterCard/Visa) card, he gets a cover of Rs 2,00,000. According to the bank, this insurance cover becomes operational when the card has been used once on any channel ATM, POS, or E-COM during the last 90 days from the date of the accident. However, due to a lack of information about it, only a few people can claim this insurance.
Use ATM once in 45 days
Generally, if a person has been using the ATM of any government or non-government bank for at least 45 days, then he becomes entitled to the insurance service provided with the card. Therefore, experts advise that ATM should be used once in 45 days. However, different banks have fixed different periods for this. Banks issue many types of debit cards to customers. The amount of insurance available on the ATM card is decided according to its category.
Nominee gets claim amount
Banks provide insurance coverage to customers up to Rs 1 lakh on Classic Card, Rs 2 lakh on Platinum Card, Rs 50 thousand on Ordinary Master Card, Rs 5 lakh on Platinum Master Card and Rs 1.5-2 lakh on Visa Card. Under the Pradhan Mantri Jan-Dhan Yojana, customers also get insurance coverage of Rs 1 to 2 lakh on RuPay cards available on open accounts. If a debit card holder dies in an accident, his nominee can go to the concerned bank and make an insurance claim.
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