Understanding The Air Accident Insurance Features Of Credit Cards

Credit cards are popular for spending but often with complex terms. users remain unaware of the benefits they offer. A recent Air India flight crash in Ahmedabad has highlighted the importance of understanding air accident insurance, a feature many credit cards provide. Although rare, such accidents underscore life's unpredictability, and this insurance can offer crucial financial support to loved ones.

Air accident insurance is typically available only to the primary cardholder. It does not cover family members traveling together or add-on cardholders. Several credit cards offer complimentary air accident insurance when tickets are bought using the card. For example, IndusInd Bank's Avios, Tiger, and Pinnacle cards provide Rs 25 lakh coverage. Premium cards like HDFC Bank's INFINIA and SBI Aurum offer higher coverage of Rs 3 crore and Rs 3.5 crore, respectively.

Understanding Credit Card Insurance Terms

To qualify for air accident coverage, the credit card must be active, usually requiring at least one eligible transaction within a specified period. This timeframe varies by issuer. For instance, IDFC First Bank's Ashva card requires a transaction in the last 30 days for Rs 1-crore coverage, while ICICI Bank's Rubyx card needs one within 60 days for similar coverage.

Ankur Mittal from Card Insider advises reviewing policy documents as terms can differ significantly between cards and issuers. It's important to note that air accident insurance excludes certain situations like acts of terrorism.

Claiming Air Accident Insurance Benefits

Timely reporting is essential when filing a claim. The nominee or next of kin must report the incident within a specific timeframe set by the issuer and submit necessary documents like a death certificate and completed claim form. Claim periods vary; Yatra SBI Card and AU Zenith Plus allow a 90-day window from accidental death, while ICICI Bank's Sapphiro offers 60 days.

Tata Neu Infinity and Regalia HDFC Bank cards also provide air accident coverage if death occurs within 12 months of an accident due to bodily injury. Understanding these terms ensures beneficiaries can claim benefits in case of accidental death.

Changes in Insurance Coverage

Credit card terms undergo regular reviews, so staying updated on changes is crucial. For example, SBI Card will discontinue its complimentary air accident insurance on select premium cards from July 15. Cards like SBI Card ELITE will lose their Rs 1-crore coverage, while co-branded SBI cards will lose this benefit from August 11.

The Tata Neu Infinity and Regalia HDFC Bank credit card policies are valid until July 22, subject to terms on the bank's website. Cardholders should review these details before this date to ensure they understand their coverage.