ATM or debit cards do not automatically include insurance, but many banks offer complimentary insurance benefits with certain types of debit cards. These benefits may include personal accident cover, purchase protection, and fraud protection. However, most customers are not aware of these features.
To ensure transparency and awareness, banks should issue an insurance policy certificate when they provide ATM or debit cards. This certificate should clearly mention the type of cover included, if any. In cases where no insurance is provided, the bank should issue a negative certificate stating that no insurance is linked to the card. This will help avoid confusion for customers and other stakeholders.
Personal accident cover provides financial support in case of accidental death or permanent disability. Purchase protection can cover the cost of items bought with the card if they are damaged, lost or stolen within a certain period. Some cards also include fraud protection, covering unauthorised transactions if the card is lost or stolen.
Most debit card insurance benefits come under group policies managed by the bank, rather than individual policies for each cardholder. The process for making a claim usually involves informing the bank of the incident and submitting the necessary documents.
It’s important to note that not all debit cards include insurance benefits. Some may require an additional fee or be part of a premium package. Regardless, banks must clearly communicate whether or not insurance is included by issuing a policy certificate or a negative certificate at the time of card delivery.
