Just about everyone these days relies on an ATM or uses a debit card to manage their money. Whether it is for paying bills online or taking money from an ATM, these cards have become integral to our daily lives.
However, what if we let you know that most people don’t know about a hidden perk your ATM card offers? Yes, it is true; banks seldom ever notify their clients about it.
Not Only for Transactions—Your ATM Card Also Provides Insurance
Believe it or not, your normal debit card helps you make payments in addition to other things. It’s true that several banks in India provide free insurance coverage when you get a debit card from them. This coverage includes accidental death insurance and sometimes personal accident insurance.
Depending on the kind of card you possess, the coverage amount, ranging from ₹1 lakh to ₹10 lakh or more, could vary anywhere. Furthermore, you do not need to spend a single rupee more for this coverage. It is already part of the card when the bank hands it over to you.
Which banks provide this complimentary insurance?
This benefit is offered by almost all the major Indian banks. Banks include:
State Bank of India (SBI)
Punjab National Bank (PNB)
HDFC Bank
ICICI Bank
Union Bank
Bank of Baroda
All provide accidental insurance coverage via their debit cards.
Many cardholders are ignorant of this benefit, though, because most banks do not emphasize it during account opening or card issuance.
Insurance Types Offered through Debit Cards
ATM cards typically include two forms of insurance:
1. Non-Air Accident Cover applies to road mishaps or any non-air travel-related
accident.
2. Air accidental coverage applies if the accident occurs while airborne.
Let’s take the example of the State Bank of India (SBI) to understand this better.
SBI Debit Card Insurance Information
Here is what SBI provides for various card categories:
SBI Gold Card
Non-air accident: ₹2 lakh
Air accident: ₹4 lakh
SBI Platinum Card
Non-air accident: ₹5 lakh
Air accident: ₹10 lakh
SBI Pride (business card)
Non-air accident: ₹ 2 lakh
Air accident: ₹4 lakh air accident
SBI Premium (Business Card)
Non-air accident: ₹ 5 lakh
Air accident: ₹10 lakh air accident
SBI Visa Signature/MasterCard World Card
Non-air accident: ₹10 lakh
Air accident: ₹20 lakh air accident
This data was confirmed on the SBI official website as of May 1, 2025.
There’s a Catch, though: Be Aware of These Crucial Conditions
There are several conditions you should be aware of before you rush to file the claim. The insurance cover is only valid should you fulfill every one of the following:
1. Card usage over the past 90 days: In the 90 days prior to the accident, you must have made at least one financial transaction, such as an ATM withdrawal or shopping using your debit card.
2. Accidental Death Only: The insurance is applicable only if the death is caused by an accident.. It does not pertain to natural death or death from disease
3. Demand Inside 90 Days: Within 90 days of the death, the bank has to submit an insurance claim. If you don’t act within the given time frame, there’s a good chance your claim won’t be accepted.
Should even one of these criteria not be satisfied, the insurance payout will not be forthcoming.
Final Notes: Check With Your Bank Today. Knowing this hidden advantage, you should first call your bank and ask about the insurance specifics for your debit card. Alternatively, you can visit your bank’s official website, where under the “Debit Card Features” area, this kind of information is typically found.
Being informed now will help your family get through a tough time rather than missing out on an advantage. After all, it’s a complimentary insurance coverage, and awareness of it could mean all the difference.
