ATM cards have become an integral part of our daily life. It not only eliminates the need for standing in long queues outside a bank for withdrawing money but also provides additional benefits on retail and online purchases. Besides, ATM cards offer a host of other benefits which are unknown to most of the customers. ATM cardholders are entitled to an accidental insurance cover.
Almost all private and public sector banks provide accidental death cover or accidental hospitalization cover for customers with an active bank account. The value of insurance offered under this scheme can be up to ₹500000. Normally, the value of insurance varies depending on the type of account, value of transactions, and facilities available with the card. When a customer gets to know about the insurance cover try to get more information but no Bank promotes this information. Credit cardholders also get accident cover insurance with their card. In case the bank account or credit card is inoperative it is taken back by the bank.
Benefits of Using an ATM Card
Quick Deposit and Transfer of Money
ATM card not only provides fast money withdrawal but also helps in the deposit of money through a deposit machine without the need of visiting the bank. Customers without net banking facilities ATM machines get quick fund transfer facilities through the card. Some of the banks also have unlimited cash transaction facilities through ATM cards in a month without any additional charges.
Digital ATM cards reduce the chances of losing money, particularly when traveling from one place to another. Also, the customer never faces a shortage of money because the cards are centrally linked to the bank account. One can withdraw according to the available cash limit and type of account. ATM facilities are available 24/7 and are secure with the help of 4 digit pin. Some ATMs require an additional OTP for making any withdrawal transaction. Hence there is no need of carrying cash, you can keep your money safely in the bank account and withdraw it with the help of an ATM card when necessary. Over the last few years, public and private sector banks have increased their ATM network significantly and now there is a swiping machine in every corner of the city. According to new government regulations, cash transactions are limited to ₹300000 per day.
ATM Cards Can Be Used For Shopping
You can use ATM cards for purchasing goods and services across retail and online stores. Retail outlets usually have PoS machines to allow their customers to pay using ATM cards. For online shopping, you need to provide card details and an OTP for secure transactions.
Post demonetization, the Indian government is promoting cashless transactions. At times you may find certain financial institutions with your credit card facilities. Always be aware of the changes made by the government and the banks from time to time. Keep an eye on the different charges and transaction limitations before using an ATM card for regular transactions.
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How to Claim Insurance?
Since most ATM cardholders are unaware of the insurance they are reluctant to make any kind of claims. To claim the insurance you are required to inform the police the moment the insured person meets with an accident. You need to submit all the relevant documents and medical reports to the concerned authorities. In the event of expiry of the person's postmortem report, death certificate, police certificate, and driving license of the dead person are required. The banks also check whether the cardholder has made any valid transaction using the ATM card within 60 days.
ATM Card Holders Are Entitled To the Following Benefits
If one hand or one leg is lost in an accident the applicant gets a benefit of ₹50000.
If two hands or two legs are lost in an accident the applicant gets a benefit of one ₹100000.
In the event of accidental death, the cardholder gets a benefit of ₹100000. The benefit for MasterCard holders is ₹200000.
Banks typically issue 3 different types of ATMs. And benefits vary depending on the type of card and the limit of transactions.
The minimum value of insurance for an ATM cardholder is ₹25000.
If you have active debit or credit cards you are eligible for an accident cover insurance of around ₹25000-500000. The clauses of the insurance clearly say that the ATM cardholders have a free accident cover that can be claimed within 90 days after the applicant meets with an accident. According to financial experts, the accidental cover against an ATM card can provide our customers with insurance exchanges between ₹50,000 to ₹500000 based on the type of card. Jan Dhan account holders get an insurance cover of around ₹200000. In the event of physical disability or death in the applicant or their family member can approach the bank for compensation. The bank refuses to pay then they can file a complaint in the consumer forum.
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