SBI Card Major Policy Update: Air Accident Insurance Discontinued, New Minimum Due Payment Rules Revealed

SBI Card has announced pivotal updates to its credit card policies, set to take effect from July 15, 2025. These revisions encompass a restructured methodology for calculating the minimum due payment, a revamped hierarchy for payment allocation, and the discontinuation of complimentary air accident insurance on several SBI credit card variants.

New Update in SBI Card Policy

Effective July 15, 2025, SBI Card will withdraw the Rs 1 crore complimentary air accident insurance benefit from select premium cards, specifically the SBI Card Elite, SBI Card Miles Elite, and SBI Card Miles Prime. Consequently, holders of these cards will no longer enjoy this insurance coverage beyond the stipulated date.

In tandem, the Rs 50 lakh complimentary air accident insurance currently extended to SBI Card Prime and SBI Card Pulse will also be terminated as of July 15, 2025. According to official communications on SBI's platform, cardholders of these variants will cease to receive this benefit post this deadline.

Furthermore, from August 11, 2025, the Rs 1 crore complimentary air accident insurance coverage on select co-branded SBI credit cards-including the UCO Bank SBI Card ELITE and Central Bank of India SBI Card ELITE-will be discontinued.

Revision Extends to Complimentary Insurance

This revision extends to the Rs 50 lakh complimentary insurance on various co-branded cards such as UCO Bank SBI Card PRIME, Central Bank of India SBI Card PRIME, Karnataka Bank SBI Platinum Credit Card, and Federal Bank SBI Platinum Credit Card, among others.

On the payments front, commencing July 15, 2025, the calculation of the minimum amount due (MAD) on SBI Credit Cards will adopt a new formula. The MAD will encompass 100% of GST, EMI dues, applicable fees and charges, finance charges, any overlimit amounts, plus an additional 2% of the remaining outstanding balance.

Additionally, the sequence in which payments are applied toward a cardholder's outstanding balance will be restructured. Payments will prioritize settling GST in full, followed sequentially by EMI installments, fees and charges, finance charges, balance transfers, retail spends, with cash advances being settled last.