BENGALURU: Many of us always carry debit and credit cards but are we aware that these cards also come with a complimentary personal accident insurance cover? Yes, you can claim your insurance through these cards. While some banks offer complimentary insurance on cards, some charge a monthly fee for the coverage.
Mahavir Chopra, Founder, Beshak.org, an insurtech platform, said, “Many credit card and debit card companies do have life insurance, accident insurance, or a cyber insurance cover as part of their value-added offerings. These offerings may come with their own scope of cover and terms and conditions that need to be understood before one depends on them.”
For instance, an accidental death cover can be an air accidental death cover, which is a very small risk covered in comparison to covering all accidental deaths. Also, cards may require you to be ‘active’ with recent transactions for the benefit of being active. “For instance, it may require a transaction in the last 3 months or 6 months. In case there is no transaction in the last 3/6 months, the claim may not be payable,” he added.
Rohit Chhibbar, Head of Credit Cards, Paisabazaar, said, several mid-range to premium Credit Cards offer insurance related to personal accident, air accident and travel-related needs to card holders. These cards typically provide Air Accident Death cover and Emergency Overseas Hospitalisation cover. However, one should have a clear distinction between insurance needs and choosing the right credit cards and not mix the two. Choose a credit card only on the basis of its features and benefits and how suited it is to your expenses and lifestyle. Don’t choose a credit card based on the insurance perks it offers, he said.