Debit cards are a widely used mode of payment and often come with complimentary insurance coverage. However, understanding the type, scope and how to claim the benefits can be a challenge. Know more.
Debit cards are a common mode of payment for many people in India. They are convenient and widely accepted, allowing users to make online and offline transactions. Besides the basic features of a debit card, such as withdrawing money from ATMs and making purchases, many debit cards come with additional benefits, such as insurance coverage.
Types Of Debit Card Insurance Coverage
Most debit cards come with complimentary insurance coverage that offers protection against various risks. These may include personal accident cover, liability cover, purchase protection cover, loss/delay in baggage, and more. However, the type and extent of coverage may vary depending on the cardholder's card type and account type.
Sachin Vasudeva, director of Paisabazaar, a financial services company in India, says, "Not all cards offer the same insurance covers; these may vary from one card to another depending on the card type or the account type of the cardholder. Premium or private debit card variants usually offer better insurance cover packages than regular or basic card variants."
For instance, the Axis Bank Burgundy debit card, issued only to Burgundy private members, offers a more comprehensive insurance package, including personal accident insurance cover, air accident cover, loss/delay in baggage, and purchase protection cover. In contrast, the Axis Bank Liberty debit card only covers personal and air accident insurance. Even when two cards offer similar insurance coverage, the amount may differ. For example, with a Burgundy card, you get a personal accident cover of Rs 15 lakh, while with a Liberty card, it is up to Rs 5 lakh only.
How To Claim Debit Card Insurance Coverage
One of the benefits of debit card insurance coverage is that it is offered "complimentary" without any additional application required. However, claiming the benefits of these insurance covers may vary depending on the card type, card issuer, and the coverage offered.
In most cases, insurance coverage is provided through an agreement between the card issuer and an insurance provider. To claim the benefits, you must fulfil the terms and conditions agreed upon in this agreement. This may include submitting the required documents, such as a copy of the police report for a personal accident, within a specific time frame.
Therefore, reading and understanding the terms and conditions of your debit card insurance coverage before making a claim is crucial. "To claim the benefits of these insurance covers, they may vary from one card to another and from one provider to another," advises Vasudeva.
Debit card insurance coverage can offer valuable protection against unexpected events. However, it is essential to understand the type and extent of coverage your card offers and how to claim the benefits if needed. Doing so lets you make the most of your debit card benefits and stay financially protected.