Kathmandu. Nowadays, almost every person has a bank ATM card or debit card. Customers use these cards only to withdraw money. Some even use cards for online payments.
Atm cards in India are not limited to money transactions. Banks there also provide insurance cover to customers on the basis of taking ATM cards.
Many banks in India offer accidental death cover ranging from Rs 1 lakh to Rs 20 lakh to ATM card holders. This insurance facility is that the ATM cardholder does not have to pay any extra money. However, many people in India know little about it.
India’s largest banks Such as Stutt Bank of India (SBI), Punjab National Bank, HDFC Bank, ICICI Bank, Union Bank, Bank of Baroda provide accidental death insurance and personal accident cover to their customers at ATM or debit cards. This insurance comes in handy when the customer dies due to any untoward incident.
For example, SBI Bank of India compensates master and visa card holders under SBI Gold up to Rs 2 lakh in non-air accident insurance and up to Rs 4 lakh in air accident insurance.
Similarly, in SBI Platinum, the cardholder gets a compensation of up to Rs 5 lakh in non-air accident insurance and Up to Rs 10 lakh in air accident insurance.
Similarly, in SBI Pride (Business Debit Card), the cardholder gets a compensation of up to Rs 2 lakh in non-air accident insurance and Up to Rs 4 lakh in air accident insurance.
On SBI’s premium (business debit card), customers get a compensation of up to Rs 5 lakh on non-air accident insurance and Up to Rs 10 lakh on air accident insurance.
Similarly, on SBI’s Signature (MasterCard World Debit Card), customers will get a compensation of up to Rs 10 lakh in non-air accident insurance and Up to Rs 20 lakh in air accident insurance.
In India, such insurance is active when the card holder has to use its ATM card in the last 90 days. Similarly, the ATM holder should have died in an accident and not due to illness. In case of death in an accident, banks in India have to claim insurance in the bank within 90 days. If all these conditions are not met, the customer will not get the insurance claim.
In Nepal, however, some banks provide insurance money to customers in case of some fatal diseases while keeping the specified amount as a deposit while opening a bank account. Such insurance coverage is provided by banks to customers in collaboration with non-life insurance companies. Nepal’s banks, however, do not provide accident insurance facility on ATM cards.
