In today's world, only a small number of people do not use ATM cards. Pradhan Mantri Jan Dhan Yojana and Rupee Card initiatives have made ATMs an important part of many people's daily lives. It has not only reduced the need for cash, but it has also made transactions much easier. ATM cards allow you to make fast and simple transactions, whether you are purchasing items or using other financial services. Besides these advantages, ATM cards offer many other advantages of which many people are unaware, one of which is insurance without paying any premium.

When a bank issues an ATM card, the cardholder is automatically covered for accidental death and injury. Sadly, many people are unaware that their debit/ATM card entitles them to life insurance. For instance, according to the State Bank of India website, in the case of untimely death, debit cardholders are given personal accidental insurance (non-air).

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Importance of debit card transactions

To avail of this insurance, transactions must be conducted with a debit card within a particular period, which may vary depending on the card. Some cards require the cardholder to make at least one transaction within 30 days to activate the insurance. For others, transactions must be made within the previous 90 days to keep the insurance coverage in effect.

Free insurance coverage on ATM cards

If you have been using your ATM card regularly for more than 45 days, you may be eligible for free insurance coverage, which may include both accident and life insurance. This coverage can be claimed in the event of an accident or death, and the amount of coverage is dependent on the card category. For instance, SBI provides its Gold ATM cardholders with up to ₹4 lakh for accidental death (air travel) and up to ₹2 lakh for non-air travel accidents. Premium cardholders get more coverage of ₹10 lakh (air) and ₹5 lakh (non-air).

HDFC Bank, ICICI Bank, Kotak Mahindra Bank, as well as other banks, offer various levels of coverage to their debit cardholders, with some cards offering contingency insurance coverage of up to ₹3 crore. This insurance is provided free of charge, and no additional bank documents are necessary to acquire this benefit.