Today, ATM cards have become a must for everyone, as they provide a safe option to carry money instead of cash. Most people may not know that ATM cards also come with some insurance benefits, including accident and accidental death insurance.

In case of the death of the ATM cardholder, the family can get up to ₹ 10 lakh under the insurance coverage associated with the card. Most banks automatically include accident insurance coverage with the issuance of ATM cards, although many customers remain unaware of this benefit as banks rarely explain it clearly.

The insurance amount varies according to the type of card. For example, a Classic card offers ₹ 1 lakh, a Platinum card ₹ 2 lakh, a Standard MasterCard ₹ 50,000 and a Platinum MasterCard ₹ 5 lakh. Visa cardholders can get coverage of ₹1.5 to ₹2 lakh and RuPay cardholders can claim up to ₹2 lakh.

In case of loss of hand or leg in an accident, ₹50,000 can be claimed. If both limbs are lost or the cardholder dies, the insurance payout can range from ₹1 to ₹5 lakh depending on the type of card. Family members can apply for an insurance claim by submitting relevant documents, such as FIR copies, treatment records, death certificates and other proofs, at the bank branch.