Most ATM Cardholders Eligible for Free Accident Insurance—Are You?

Millions of Indians use ATM and debit cards daily, yet few are aware that these cards may come with free accidental insurance coverage of up to ₹20 lakh. Offered by leading banks like SBI, HDFC, ICICI, PNB, Bank of Baroda, and Union Bankthis personal accident cover can provide vital financial support to families in case of the cardholder’s accidental death.

This benefit is included at no extra cost—but accessing it requires awareness and timely action.

Up to ₹20 Lakh Accident Cover—Bank-wise Benefits Explained

According to the State Bank of India (SBI), here’s how much insurance different cardholders may receive:

Source: SBI official website, accessed May 1, 2025.
Other banks offer similar schemes based on card type and transaction activity. Customers are advised to consult their issuing bank to confirm the exact sum insured applicable to their card.

Conditions You Must Fulfill to Claim the Insurance

While this insurance is a major benefit, it’s important to understand the terms and conditions:

• Transaction Requirement:
  The cardholder must have completed at least one financial transaction (ATM withdrawal or online payment) within 90 days prior to the accident.

• Cause of Death:
  Only deaths resulting from accidents are covered. Deaths due to natural causes or illnesses are not eligible.

• Claim Timeline:
  The insurance claim must be filed within 90 days of the incident. Delayed claims are not processed.

Failure to meet even one of these conditions can result in denial of the claim. Awareness and timely documentation are crucial to availing of this benefit.

Why Awareness Matters

The lack of awareness around this facility often means eligible families miss out on significant financial support. As in the illustrative case of “Mohan,” a daily wage earner, thousands across India may be eligible for compensation but are left unsupported due to unawareness or procedural delays.

Banks may not actively promote this feature, so it becomes the responsibility of the cardholder to stay informed and ensure that family members are also aware of the claim process in case of emergencies.

What You Should Do Now

• Check with your bank or visit their official website for details on your debit card’s insurance coverage.

• Make regular transactions using your card to stay eligible.

• Inform family members about the insurance and how to initiate a claim.

• Save transaction records and maintain an emergency file with card and account details.

This accidental insurance is a hidden but powerful safety net—ensure it doesn’t go unused when it matters most.