Insurance worth lakhs is available for free on ATM card, it is important to know these rules for claim.

At present, there will be only a few people who do not use ATM card. Thanks to Pradhan Mantri Jan-Dhan Yojana (PMJDY), ATM has now become a part of everyone's everyday life. Instead of keeping cash in their pockets, people prefer to keep ATM cards. But do you know that as soon as the ATM card is issued to you from the bank, the cardholders get accidental insurance and untimely death insurance. Most of the people in the country are unaware that they get life insurance cover on debit/ATM cards also.

The amount of insurance depends on your card. Some debit cards offer free accidental insurance coverage up to Rs 3 crore. This insurance coverage is given free of cost and neither any premium is charged from the debit card holder nor any additional document is asked by the banks.

Transactions will have to be done through debit card within a certain period.

There are certain terms and conditions for free accidental insurance coverage on debit card. The most important of these is that the cardholder has to make certain transactions through that debit card within a certain period. This period may vary for different cards. To activate the insurance policy on some ATM cards, the card holder has to make at least one transaction in 30 days. Some cardholders are required to make a transaction within the last 90 days to activate the insurance coverage.