Hidden Credit and Debit Card Insurance Benefits: What Banks Never Tell You

In today’s digital age, debit and credit cards have become a staple in almost every household. While most people are aware of the convenience these cards offer for financial transactions, very few know about a major hidden benefit they might come with — insurance coverage worth lakhs or even crores of rupees. Surprisingly, neither banks nor card agents openly share this information with customers, and most users never ask.

Not Every Card Comes with Insurance

First and foremost, it’s important to note that not all debit or credit cards offer insurance benefits. This facility is limited to specific card types, generally premium or special-tier cards. Even when these benefits are included, banks impose certain eligibility conditions that must be fulfilled to activate or retain the coverage.

Some Cards Offer Huge Insurance Coverage

Let’s take a look at some examples:

• HDFC Bank Platinum Debit Card: Offers up to ₹3 crore international air accident insurance coverage.

• State Bank of India (SBI) Pride Debit Card: Provides ₹4 lakh in case of death due to an air accident and ₹2 lakh for other accidental deaths.

• SBI Platinum Debit Card: Comes with ₹5 lakh accident insurance and ₹10 lakh for air accident death.

• SBI Card ELITE and SBI Card PRIME: These credit cards can offer insurance benefits of up to ₹1 crore.

These are not minor benefits, and they could provide a crucial financial cushion to families during emergencies. However, the lack of awareness prevents many users from taking advantage of these perks.

What Are the Eligibility Criteria?

Each bank sets its own terms and conditions to unlock or maintain these insurance features. Some common requirements include:

• Monthly spending thresholds: Certain credit cards require users to spend a minimum amount every month to qualify for insurance.

• Minimum balance: Debit card holders might need to maintain a higher minimum account balance.

Failing to meet these criteria could result in losing the coverage — often without the user even knowing it was active in the first place.

Understand the Terms Before You Apply

If you're planning to get a card with insurance coverage or believe your current card includes such benefits, make sure to:

• Confirm the feature with your bank

• Ask for written documentation on the terms and benefits

• Read all fine print, especially around exclusions and claim processes

Insurance features are only useful when the policy conditions are understood and met.

Don’t Forget to Nominate Someone

An often overlooked yet critical step in using card-linked insurance is appointing a nominee. If an unfortunate event occurs, the claim amount will only be given to the registered nominee — and that too only if they initiate the claim process. Make sure:

• You have nominated someone officially

• Your nominee is aware of the insurance and how to claim it

Without this, even eligible insurance may go unclaimed, depriving your family of essential financial support.

Final Thoughts

Credit and debit cards can do much more than just simplify payments — they can provide life-saving financial coverage, too. However, the lack of transparency from banks and agents means most people remain unaware of these benefits. It’s time to take charge of your financial tools. Ask questions, read the terms, and unlock the full potential of your cards.