Debit Card Insurance

Understand debit card insurance coverage, its types, claim process and benefits.
Debit Card Insurance Coverage
3 mins

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 about ATM debit card 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 policy that 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 of ATM 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 of ATM 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

Debit card insurance coverage – Things to remember

Before purchasing a debit card, it is important to understand what type of coverage is available under the debit card insurance plan.

  • Check policy details: Always check the details of the policy before purchasing it. Know the benefits available and the eligibility criteria.
  • Keep it safe: Keep your debit card safe and secure. Let your bank know if you lose your card.
  • Claim deadline: Be sure to check the deadline for filing a claim after an incident. The bank or insurance company may refuse to pay the claim if submitted after the deadline.
  • Document requirement: Keep a record of all the documents that may support a claim.
  • Complimentary insurance: Some debit cards offer complimentary insurance to customers. These policies usually have a specific duration or may come with specific riders.

Debit card protection with CPP Wallet Care

Bajaj Finance offers a CPP Wallet Care plan that provides complementary fraud protection including mobile wallet protection. It provides protection against lost/stolen, tele-phishing, phishing, and online transactions on cards for up to Rs. 2 lakh.

This card protection plan comes with other exclusive benefits such as a single-call card blocking facility, emergency travel assistance, free PAN card replacement facility, and an annual ZEE5 subscription.

In conclusion, debit card insurance coverage is an important benefit that cardholders should be aware of. This type of insurance coverage provides protection against unexpected events such as accidental death or disability, loss of card, theft, fraudulent transactions, and medical emergencies outside the home country.

Frequently asked questions

Does a debit card offer insurance?

Typically, debit cards do not come with insurance coverage as standard. However, some banks may offer optional insurance packages with certain debit card variants.

Do you get insurance on an ATM card?

No, insurance coverage is not automatically provided with an ATM card. However, some banks may offer limited insurance benefits as part of their debit card offerings.

Can debit cards be insured?

Yes, some banks offer the option to add insurance coverage to debit cards for an additional fee. This may include benefits such as purchase protection, travel insurance, or medical coverage.

What card benefits do debit cards have?

Debit cards typically offer benefits such as cashback rewards, discounts at partner merchants, fraud protection, and access to exclusive deals and promotions.

What is the cost of debit card insurance?

The cost of debit card insurance varies depending on the coverage and the bank offering the insurance. It may be included as part of an annual fee for premium debit card variants or offered as an optional add-on for a separate fee. It is advisable to check with your bank for details on insurance options and associated costs.

Show More Show Less


Bajaj Finance Ltd. (BFL) is merely a distributor of third party products from Assistance Services providers such as CPP Assistance Services Pvt Ltd, Bajaj Finserv Health Ltd.(BFHL), AWP Assistance India Pvt. Ltd. (Allianz), Doc Online Health India Pvt Ltd. etc. Issuance of the product is at sole discretion of Assistance Company or Services provider . The product and services or benefits assured under the product shall be governed by respective partner’s product T&C’s and BFL does NOT hold any responsibility for the issuance, quality, serviceability, maintenance and any claims post sale. Your purchase of an assistance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any product. For more details on terms and conditions, inclusions and exclusions please read the product sales brochure carefully before purchase or subscription. All product information such as membership fees, benefits, exclusions, value added services, etc. are authentic and solely based on the information received from the respective value added service provider or Assistance company.

Note – While we have made all efforts and taken utmost care in gathering precise information about the products, features, benefits, etc. However, BFL cannot be held liable for any direct or indirect damage/loss. We request our customers to conduct their research about these products and refer to the respective product’s sales brochures before concluding their sale.