Death or permanent total disability caused due to snake bite, drowning and electric shocks will be covered under the new insurance scheme offered to 14 crore RuPay debit card holders. These are the news category of mishaps being covered by the personal accidental insurance cover on the desi debit card. Earlier, only rail, air and water accidents were covered under the scheme.
National Payments Corporation of India (NPCI), the issuing agency for RuPay cards, has extended the accident insurance and permanent disability cover of Rs 100,000 on RuPay cards by another year with effect from April 1, 2015. For premium card holders the cover is Rs 200,000.
The claim under personal accident insurance (death and permanent total disability) shall be payable only if the card holder has carried out at least one transaction. at a merchant establishment, ATM, e-commerce, micro ATM/business correspondent of the bank at locations 45 days prior to the date of accident including accident date.
Snake bites, electric shocks and drowning are common in villages, and there was a lot of demand that such cases be covered to make the policy more inclusive.
The new policy with a cover of Rs 1 lakh for 2015-16 will be offered by New India Assurance company. Last year, the accident insurance was offered by HDFC Ergo.
G Srinivasan, chairman and managing director, New India Assurance, told dna, “We are offering the accident cover this financial year on all the 14 crore RuPay cards. It will not only for Jan Dhan account holders but for all Rupay cards. The cover will be for a year as accident insurance needs to be renewed every year.”
While for the card holder the insurance comes free, the only caveat for the insured is that they should have a transaction in their account at least 45 days prior to the accident, the same condition that was put up in the first year cover as well.
A P Hota, managing director and chief executive officer, NPCI, which issues the debit cards, told dna, “We have sent a circular to all the banks about three-four days back about the extension of the accident cover on the RuPay cards. The old insurance cover had come to an end on March 31, 2015. Now we have renewed the accident insurance policy with New India Assurance Co.”
RuPay cards a combination of two words — rupee and payment — are locally developed debit cards which ensure lower transaction cost as processing is done within the country.
Curated from: RuPay insurance cover expanded to snake bites, drowning