How to claim insurance amount from Rupay debit cards? Here’s all you need to know

Many people possess cards that offer more than just convenience; they also provide complimentary insurance coverage. However, a significant number of cardholders are unaware of this additional benefit. Consequently, they may not inform their loved ones about the insurance coverage available to them in the event of their passing. 

It's crucial for individuals falling into this category to familiarise themselves with their cards, understand the extent of insurance coverage provided, learn about the claim process, and become aware of any hidden conditions. By doing so, they can ensure that their family members are informed and prepared to claim the insurance amount promptly in the unfortunate event of their demise.

Firstly, it's essential to understand the type of insurance we're discussing. This isn't life insurance, health insurance, or medical claim reimbursement, but rather personal accidental insurance. This coverage provides a lump sum amount in the event of death or permanent total disability resulting from an accident.

Also Read: From premiums to claims process: Decoding key terms in insurance policies | 8 points

Types of Rupay cards

Now, let's delve into the types of Rupay cards available in the market and the corresponding insurance coverage they offer:

1. Classic Card: This card doesn't provide any insurance coverage. Although it used to offer coverage previously, this feature has been discontinued since the financial year 2020.

2. Pradhan Mantri Jan Dhan Yojana (PMJDY) Cards: Old PMJDY Card (issued before 28th August 2018): Offers coverage of up to ₹1 lakh. New PMJDY Card (issued after 28th August 2018): Provides coverage of up to ₹2 lakhs.

3. Premium Cards:

• Platinum Card: Offers coverage of up to ₹2 lakhs.
• Select Rupay Card: Provides extensive coverage of up to ₹10 lakhs.

It's noteworthy that Rupay has collaborated with two insurers, namely New India Assurance, which is for non-premium cardholders that means the PMJDY insurance is from New India Assurance and the premium cards, Platinum and Select, Rupay has taken their insurance from Tata AIG to provide this insurance coverage.

Also Read: How to link RuPay credit card to UPI? A step-by-step guide

Eligibility 

Automatic Eligibility and Premium Payment: If you possess a card that offers insurance coverage, you are automatically eligible for the insurance benefit without needing to pay any premium. The insurance coverage comes as a complimentary benefit with the card.

Conditions for Eligibility: While there's no premium to be paid, there are certain conditions you must meet to remain eligible for the insurance coverage:

• Non-Premium PMJDY Cards: For non-premium PMJDY cards, if you haven't used the card for any transactions within the last 90 days, and an accidental death or disability occurs, you may not be eligible to claim the insurance benefit. It's crucial to keep the card active by using it for transactions regularly.
• Premium Cards (Platinum and Select Cards): If you hold premium cards like Platinum or Select Rupay cards, you must ensure that you've made at least one transaction using the card within the last 45 days to remain eligible for the insurance claim. Regular usage of the card is necessary to maintain eligibility for the insurance coverage.

How to claim?

Let's break down the claim process for the insurance associated with your Rupay card, especially for the PMJDY Cards.

Initiating the claim process: Visit your bank branch where you hold the Rupay card. They will guide you through the required documents and assist you in filling out the claim form. Alternatively, you can opt for the online method by sending an email to rupay@newindia.co.in. Make sure to attach all necessary documents to the email. Also, remember to photocopy the email and courier it offline to New India Assurance.

Time limit for filing the claim: It's essential to file the claim within 90 days of the accident. In cases where the cardholder is hospitalised for an extended period, the claim can still be filed once they are able to do so, even after the 90-day period.

Document submission and verification: Once the claim intimation is given, any supporting documents requested by the company should be submitted within 60 days. The insurance company will appoint an investigative officer within three days to investigate the case and prepare a report within 30 days. If there's any delay in document submission, reminders will be sent by New India Assurance after 60 and 81 days.

Claim disbursement: Upon completion of the investigation and verification of documents, the claim amount will be disbursed via NEFT within 10 days. For permanent disability claims, additional documents such as the discharge card, case history confirmation, and a doctor's certification of the duration and percentage of disability are required.

For premium cardholders, such as those with platinum and select cards offering insurance covers of ₹2 lakh and ₹10 lakh respectively, the claim process remains similar but involves a different insurer, Tata AIG. So, you need to send the claim form and supporting documents via email to rupay@tataaig.com. Additionally, courier all documents to the Tata AIG office within 90 days of the accident and all the process remains the same.

Transaction timing and eligibility: If you buy the card and have an accident shortly after without any transactions within the stipulated period (45 or 90 days), your claim will not be rejected. This is because the absence of transactions during this short period doesn't affect your eligibility for the claim.

Effect of transaction timing: Even if your transaction falls within the previous financial year, it will still be considered for your claim as long as it's within the last 45 days before the incident, ensuring that your claim won't be rejected due to the timing of the transaction.

Coverage outside India: If an incident occurs in another country, you're still eligible for the claim as the insurance coverage extends worldwide, providing you with the same benefits irrespective of your location.

Up-to coverage: The terms "up to ₹2 lakhs" and "up to ₹10 lakhs" indicate that the coverage amount isn't fixed and may vary depending on the nature of the incident. While death claims typically receive the full coverage amount, permanent total disability claims specify the percentage of coverage based on the type of disability incurred.

Disability coverage breakdown: The policy outlines specific percentages of coverage for different types of permanent total disabilities. For instance, total loss of limbs or sight may result in a 100% claim, while other combinations of disabilities are similarly assessed to determine the claim amount accurately.

Also Read: 10 reasons why you should link your Rupay credit card with UPI

In conclusion, the Rupay debit card insurance program offers coverage for accidental death and disability, with varying limits based on card type. Claim initiation involves emailing forms and documents to the insurer within 90 days of the incident. While helpful, it's essential to understand coverage limits and adhere to claim requirements diligently.

However, It's crucial to remember that the insurance cover provided by the Rupay card may not be sufficient as the primary accidental cover, especially if you require a higher coverage amount based on your income and risk factors. Neglecting the 45-day transaction rule can lead to claim rejection, so it's essential to adhere to this guideline diligently. 

Rohit Gyanchandani is Managing Director at Nandi Nivesh Private Limited