Last Updated: February 17, 2023, 16:06 IST
Consumers are often unwilling to learn about the coverage that banks offer to ATM cardholders, and neither banks nor their clients give out direct information.
Depending on customer-to-customer bank transactions, the insurance cover ranges from Rs. 50,000 to Rs 10 lakh.
The use of ATM cards has simplified life. In a bank, there is no line to wait for money withdrawal if you have an ATM card. Online buying can also be done with ATM cards. Many brands and shopping apps offer a discount if the customer completes their payment via credit or debit cards. We all know that ATM cards offer several additional advantages but not many are aware that ATM cardholders are covered by insurance.
Were you aware of such a benefit of ATM cards? If your answer is no, keep reading. Nearly all banks, whether public or private, offer their customers, who have operational bank accounts, accidental hospitalisation or accidental death coverage. Depending on customer-to-customer bank transactions, the insurance cover ranges from Rs. 50,000 to Rs 10 lakh. Consumers are often unwilling to learn about the coverage that banks offer to ATM cardholders, and neither banks nor their clients give out direct information.
Yet, the majority of banks now provide insurance coverage for credit cards. The bank may withdraw your insurance if the bank account is inactive.
How to claim insurance coverage for a deceased person?
Considering how seldom people are aware of this information, they are hesitant to file any insurance claims. As soon as the concerned person is involved in an accident, you must notify the police to file an insurance claim. Maintain the integrity of any pertinent papers about the accident victim.
If the individual is hospitalised, you must retain all their medical records on hand. If, however, the person dies, the relative of the deceased person must have a postmortem report, police report, death certificate and current driver’s license of the deceased person, if any. You must inform the bank that the cardholder has used the ATM card for some valid transactions during the last 60 days.
A tax and investment specialist registered with SEBI said that with regards to accidental death insurance, credit or debit cards give free accidental death protection that ranges from Rs 30,000 to Rs 10 lakh, depending on the type of card a person is using.
Read all the Latest Business News here