Today, about 80 percent of adults in the country have at least one bank account. The government transfers benefits from many of its schemes directly to beneficiaries’ accounts. This has led to a large-scale opening of bank accounts under the Pradhan Mantri Jan Dhan Yojana.
With more bank accounts, the use of ATMs has significantly increased. Traditionally, withdrawing money from the bank requires filling out a form and sometimes waiting in line for hours. However, with an ATM, you can withdraw money immediately by entering your PIN.
Benefits of ATM Usage
ATMs offer more than just convenient withdrawals. They also provide insurance without the need to pay any premium. As soon as a bank issues you an ATM card, you receive Accidental Insurance and Life Insurance.
How to Get Insurance Benefits
After using your ATM card for 45 days, you become eligible for free insurance. You can then make an insurance claim in case of an accident or untimely death.
The insurance amount depends on the category of your card. Banks issue various cards like Classic, Silver, Gold, and Platinum, with the insurance coverage ranging accordingly. For example:
Classic Card: Rs 1 lakh
Platinum Card: Rs 2 lakh
Ordinary MasterCard: Rs 50 thousand
Platinum MasterCard: Rs 5 lakh
Visa Card: Rs 1.5 lakh to Rs 2 lakh
Rupay Card: Rs 1 to 2 lakh
Conditions and Claim Process
Under What Conditions is Insurance Available?
If the ATM cardholder becomes disabled in one hand or leg due to an accident, they can claim Rs 50 thousand. For the loss of both hands or legs, Rs 1 lakh is given. In case of untimely death, the insurance cover can go up to Rs 5 lakh.
Terms and Conditions
To avail of the ATM card insurance claim, you must continue to make transactions within a certain period, which varies by bank. Generally, banks require at least one debit card transaction within 30 to 90 days.
Documents Required for Claim
To claim accidental insurance on an ATM card, you need to submit a copy of the FIR and a certificate of treatment expenses.
In case of death, the nominee must provide documents such as the death certificate, FIR copy, and dependent’s certificate. After completing this process, the insurance amount is received.
