566599 SIP myths you must know!
One can get insurance cover once only against a single card.
Like debit cards, different types of insurance covers such as life insurance, purchase protection, travel insurance, and credit insurance are now bundled with credit cards. Users can get the benefits free of cost or by paying a nominal charge.
Credit card insurance aims to offer the cardholder security in case of unemployment, disability, injury, or death, in case the cardholder ends up not being able to pay credit card bills. Getting insurance for a credit card helps one’s credit rating remain unaffected.
Accident insurance
Various credit card companies offer accident insurance cover ranging from Rs 2 lakh to Rs 40 lakh based on the type of credit card and the account the person operates. The insurance cover offered for death due to road accidents is between Rs 2 lakh and Rs 4 lakh. For deaths due to air accidents, the insurance cover ranges between Rs 10 lakh and Rs 40 lakh.
Travel insurance
Some credit cards come with additional travel insurance benefits, that provide benefits cover for lost baggage, lost passport, etc. In cases, your baggage goes missing for more than 48 hours after your arrival at the destination, you can claim a benefit from your bank. Some credit cards cover both domestic as well as international travel.
Credit insurance
In some cases, your credit card comes with an insurance privilege where you may be allowed a waiver on your outstanding credit card amount, in case of accidental death. All credit card issuers do not offer this facility to everybody.
Purchase protection
Purchase protection on your credit card implies that items purchased using the card are insured in case the items are damaged or misplaced due to fire or theft. Purchase protection on credit cards is offered up to a value of Rs 50,000 that can be claimed within 180 days from the day of purchase.
Debit card insurance
Like credit cards, debit cards too provide multiple coverages. Besides death benefits of up to Rs 5 lakh, purchase protection, transportation of mortal remains of the user in case of accidental death, lost baggage and lots of other insurance benefits are clubbed with a debit card.
Usually, the sum assured for insurance cover is higher in the case of credit cards than debit cards.
For multiple cards
The point to note is that the free accidental life cover will be given on just one credit or debit card. If the person has more than one card, it does not make him eligible for more than one insurance claim.
How to claim?
Every credit or debit card kit has the details of this insurance policy. Without throwing away the product literature, one must wade through the fine print carefully.
To get the benefit the card should be active and there should be at least one transaction in the 30 days preceding the accident. After the incident, family members or the nominee, must visit the branch and get a claim form from the manager and submit it. After due verification from the bank authority, the amount would be credited to the beneficiary’s account.