Debit cards have become ubiquitous in today’s world. They have replaced conventional cash and have proved to be convenient in all situations. The benefits that debit cards offer are numerous. One such benefit is the debit card insurance coverage.With ATM card insurance, users are protected in case of unexpected events such as accidental death, lost card, or theft.
In this article, we will help you understand more aboutATM debitcard insurance coverage, types of coverage, and how to claim benefits if necessary.
What is debit card insurance coverage?
Debit card insurance coverage is a type of insurance policythat provides coverage in case of loss, misuse, or theft of your debit card. The coverages are usually provided by banks and financial institutions to their customers who hold a debit card from them.
Types of debit card insurance coverage
There are several types ofATM debit card insurance coverage. We have listed below some of the most common types of debit card insurance coverage:
- Accidental death and disability insurance:This type of insurance policy provides coverage to the debit cardholder in case of accidental death or disability.
- Lost card insurance:This type of insurance policy covers the replacement cost of the debit card if the cardholder loses it.
- Theft insurance:This type of insurance policy covers the debit cardholder in case of theft or misuse of the debit card by a third party.
- Medical insurance coverage: This type of insurance policy provides medical coverage to the cardholder in case of medical emergencies outside the home country.
- Fraudulent transaction insurance:This type of insurance policy covers the cardholder in case of any fraudulent transactions made using the debit card.
Also read: Types of credit card fraud
How to claim benefits of debit card insurance coverage
Now that you know the types ofATM debit card insurance coverage, it is important to understand how to claim benefits from such policies. To claim coverage, the cardholder needs to follow a simple process:
Step 1: Contact the bank
The first step is to contact the bank or financial institution where you hold your debit card. The bank usually provides a dedicated customer support service for handling such issues.
Step 2: Provide necessary details
Once you contact the customer support team, you will be asked to provide details about the incident that you want to report. If you have lost your card or if the card is stolen, you will be asked to provide the location and time of the incident.
Step 3: Fill out and submit the claim form
After providing the necessary details, you will be asked to fill out a claim form. The claim form is essential as it helps the bank or insurance company determine the eligibility and amount of coverage that should be provided.
Step 4: Submit documents
Along with the claim form, you will be required to submit all the necessary documents such as a copy of the FIR, a copy of the medical report if claiming benefit due to accidental death or disability, a copy of the card cancellation certificate, etc.
After the documents are submitted, the bank or financial institution will scrutinise the documents. Once the bank approves the claim, the insured amount will be refunded to the cardholder.
Also read: Credit card fraud
