Insurance Ombudsman: 13 Guidelines Insured Should Know

Insurance companies use various tricks to woo customers to buy policy in order to make profit. However after buying the policy, when it comes to servicing the customers the reality is different. For e.g. when a claim is made, insurer will try every possible trick to reject a claim or during renewal, the premium would be raised with no valid justification or other gimmicky features added to the policy.

In such cases, either the insured person has to accept and move ahead with the decision of the insurer or take efforts in battling typically with the company’s support functions or sometimes with the company’s different teams. However even after doing so, the outcome is not always in the favor of the policy holder.

So the final option for the insured person is to file complaint with the Insurance Ombudsman (grievance cell) of Insurance Regulatory and Development Authority of India (IRDAI), the autonomously run controlling body of all the insurance companies in India (life and general). Or lodge a legal case against the insurer. But going through a legal route is recommended only when ombudsman’s final verdict is not favorable. And also going through legal way will cost you money and the verdicts are often delayed.

For the benefit of the insurance policy holder, IRDA has set key guidelines while lodging complaint at the ombudsman. And every policy holder should be aware of these basic guidelines which will help them when lodging a complaint at ombudsman against the insurance company.

  1. There is no charge or any kind of fees for lodging a complaint. So anyone asking money in return of filing the complaint is definite case of fraud.
  2. On the behalf of the insured person, legal heir, nominee, or assignee can also file the complaint.
  3. If you are covered under group mediclaim policy (i.e. health insurance offered by the company to its employees) then on your behalf your employer can lodge a complaint at insurance ombudsman.
  4. Complaint should be made within one year from the date of receipt of the order sent by the insurer. If there is a delay then, only in certain cases with valid reasons, the ombudsman will take the case in their hands. In this situation, objection of the insurer is also taken into consideration.
  5. If the complainant is not satisfied with the decision given by the insurance company, then insured person can lodge a complaint at insurance ombudsman within one year of the receipt of the reply.
  6. If there is no revert by the insurer in a month of sending the complaint, then complainant can approach the ombudsman.
  7. There is no need of lawyer for filing complaint at the insurance ombudsman.
  8. Complainant can also file a legal complaint against the insurance company, if he/she is unsatisfied with the final verdict of the ombudsman.
  9. If the legal complaint is already made either in a court/arbitrator or consumer forum then you cannot file the same complaint at the ombudsman.
  10. After filing the complaint and submission of all relevant documents, ombudsman takes 3 month time to give final judgement (called as award).
  11. Complaint should be filed in written. Your complaint letter should contain following details of the complainant:
  • Signature
  • Name
  • Address
  • Name and address/branch of the insurance company
  • Facts or any other proof specifying the details of the complaint
  • Any other supported documents
  • Loss caused to the insured person

Check out tricks used by fraudsters claiming from IRDA.

12. You can file following complaints at IRDA for the following:

  • Delay in claim or no settlement
  • Disputes in premium charged
  • Premium paid but policy is not issued or renewed
  • There is a change made by the insurance company in the proposal form submitted by the insured.
  • Falsifying the terms and conditions of the insurance policy at the time of buying the polic

13. If the final judgement goes in the favor of the insured, then ombudsman can award compensation to the  policyholder in one of the two ways:

  • Compensation will be paid which cannot exceed more than Rs. 30 Lacs. Or
  • Will give monetary compensation which would be the loss suffered by the complainant because of the action taken by the insurer.


Cancer Insurance: Sum Assured, Premium, How to Choose

Cancer is a leading cause of death worldwide. Every year 10 lakh cases of cancer are reported in India and 5 lakh people die every year. And this number is expected to increase five folds by the year 2025.

Cancer can strike anyone – male or female, fat or thin, at any age and in any part of the body – lung, breast, mouth, colon rectum, cervix and others. Although individual can survive cancer but it comes with a very heavy cost. And this cost devastates the financial life of the family in a big way. And such individuals either have to depend on borrowing money from their friends/relatives, sell assets, utilize own savings to meet the treatment cost and fight this deadly disease. And when you include inflation and the rising medical costs consisting of high fees charged by doctors, the money requirement further increases.

How cancer insurance works:

Suppose you buy a cancer insurance with a cover of 20 lakhs and premium of Rs. 460 per month. And if you are diagnosed with cancer during the policy term, insurance company would payout across all stages of cancer. This way policy holder and family will become financially secured to a large extent.

Payout will be a certain pre-fixed percent depending on the stage. There are four stages of cancer are Carcinoma In Situ, early stage, major stage, and critical stage.

Additional reading: Features of SBI Life Sampoorn Cancer Suraksha

How to select best cancer plan?

Cancer care is long term in nature with recurring expenditure. So a cancer plan should be purchased keeping following features into consideration:

Coverage: Depending on the stage of the cancer the cost increases. So always look for insurance company offering cover for all types and stages of cancer.

Sum assured: Since the treatment cost of cancer is very high, buy a plan offering a high sum assured. Higher the sum insured, smaller would be the financial impact.

Here’s the table showing minimum and maximum sum assured along with the annual premium for a 30 year old male.

InsurerPolicy NameMinimum Sum AssuredMaximum Sum AssuredAnnual Premium (in Rs.) for 30 year old male
ICICI PrudentialCancer Protect Special2 Lakh50 Lakh1452 (30 year term, 10 lakh cover)
SBI LifeSampoon Cancer Suraksha10 Lakh50 Lakh852 (30 year term, 10 lakh cover)
HDFC LifeCancer Care Plan10 Lakh20 Lakh1333 (10 year term, 10 lakh cover)
Future GeneraliCancer Protect Plan10 Lakh40 Lakh806 (20 year term, 10 lakh cover)
Birla Sun LifeBSLI Cancer Shield Plan10 Lakh20 Lakh3210 (10 year term, 30 lakh cover)
Aegon LifeiCancer Insurance Plan10 Lakh50 Lakh3056 (30 year term, 10 lakh cover)
Max Life InsuranceCancer Insurance PlanNA50 Lakh10266 (30 year term, 50 lakh cover)
Cancer Patients Aid Association (CPAA)Cancer Insurance Policy30, 0002 Lakh8000 (One time lump sum payment)
PNB MetlifeMera Heart and Cancer Care5 Lakh40 Lakh6314 (20 year term, 10 lakh cover)
Indian Cancer SocietyICS Cancer Insurance Scheme50, 0002 Lakh1144 (for cover of Rs. 2 Lakh)

Note: For more details on these plans, contact respective companies.

Claim settlement ratio: This is the most significant criteria to be taken into consideration whenever buying any insurance (car, health, life, etc.). Always buy insurance from a company with a high claim settlement ratio.

Claim settlement process: The process of filing a claim and receiving money should not be cumbersome. It should be very simple. Before finalizing the company, understand the claim settlement process in advance. And most importantly make this process understand to the nominee or family member. Because when the policy holder is undergoing treatment, nominee/others will have to do all the claim process.

Premium waiver: There are many companies who waive off the future premiums, depending on the stage in which cancer is diagnosed.

Survival period: Post diagnosis, policy holder has to survive for a certain time period. This can range from 7 days to 15 days depending on the company’s rules. Ideally you should buy a cancer plan with minimum survival period.

Waiting period: After buying a policy, if policy holder is diagnosed with cancer within certain number of days then claim cannot be made. This is known as waiting period. Always prefer insurer asking for a minimum waiting period.

Premium: Although anyone would like to pay minimum amount possible but sometimes higher premium can offer large benefits. Best is to compare all the features and select suitable plan.

Although emotional and psychological impact cannot be completely cured. However the best one can do to fight against all types and stages of cancer is to stay prepared for the unforeseen financial calamity. And this can be done by buying comprehensive insurance for cancer.

Open e-Insurance Account: Online & Offline, Documents Required

The mission to make India digital is going at an excellent pace. Every industry is working towards going digital and making their customers life easy. Insurance is one of the sector which is already online but further advancements are taking place in this ever growing sector. The latest one is the e-insurance account (eIA).

Objective of eIA:

Insuring yourself and your assets is very essential. However what’s more important is getting access to these details whenever required. Currently you have to carry all the original insurance documents in case of demise of the insured or for any other purpose. And also there is a risk of loss of original documents/misplacing them.

And understanding this pain point, insurance regulator-IRDA has introduced e-insurance account or electronic insurance account for all the policy holders.

The objective of e-insurance account is to make life of policyholder easy by facilitating them to manage their policies in electronic form. Check out benefits of eIA.

How to open e-Insurance account – 2 Ways?

There are two ways to open electronic insurance account:

  1. Fill account opening form online: Visit You need to enter applicant details and bank account details.
  2. Fill form offline i.e. manually: Visit and download the form.

What are the details required while filling the form: online or manually?

Table below shows list of items to be filled, along with the snapshot of the form

UserID & PAN No./UIDApplicant Full Name & Father/Husband NameGender & DoBAddress - Permanent & CorrespondenceContact Details - Email ID & Telephone No.
Bank Account Type - Savings or CurrentBank Account NumberName of BankBranch Name & CityMICR or IFSC Code

eia-personal-detailsAll the details are self explanatory.

User-ID is the login-id of the einsurance account holder.

What to do after you submit the form online?

Once the form is filled online, you will have to take print out of the completed eIA form. Sign it, paste your passport sized photograph and submit the form along with a cancelled cheque & KYC details to the nearest approved person appointed by IRDA. These approved persons work on the behalf of IRDA. You can also visit any branch of your insurance provider and submit the form.

Where can I get list of approved persons for eIA account details verification?

If anyone wishes to know the list of approved person by IRDA, then they can visit this official list.

What is the role of the authorized representative?

They act as verification agent for the eIA form and the KYC details submitted. Once they review all the details, they will send the insured person’s application to the insurance repository for processing.

Another objective is to access the account in an event of the insured’s death or when he/she is not in a capacity to operate the account online.

What will insurance repository do upon receiving the application?

They will open the e-insurance account, send e-insurance account number (eIA number), login-id, and steps to set up the password. For setting the password, visit this official link.


Enter eIA number and date of birth. And click on generate OTP. The applicant will receive the OTP on the registered mobile or E-mail ID. Once OTP is keyed-in, password will be set. eia-set-passwordThe insured person can then access their eIA account by visiting

Documents required along with the eIA form:

  • Passport size photograph
  • Cancelled cheque of the bank in which the claim amount will be transferred
  • KYC documents: ID and address proof
  • Date of birth proof: PAN card, driving license, voter ID card etc. For details check this link enlisting all the required documents.

What types of insurance can be consolidated?

As of now, only life insurance policies can be converted into electronic format. But very soon IRDA will make health, motor and other forms of policies under eIA.

IRCTC Travel Insurance: Coverage, Exclusions, Claim Process

Insurance is undoubtedly the most important part of everyone’s life. However in India the insurance penetration is still very low. You must have heard many insurance companies offering coverage for personal accident, total disability etc. However such policies are either sold as a part of package e.g. two wheeler or 4 wheeler or individual policy with high or additional premium.

Ever imagined any insurance with a premium of just Rs. 1? This sounds like a marketing gimmic but IRCTC will offer travel insurance to individual’s booking e-tickets on their portal. Rs.1 premium will be for each valid ticket holder with PNR status.

This insurance for railway passengers will provide coverage against the following conditions:


  1. Death or permanent total disability: 10 Lakh
  2. Permanent partial disability: Rs. 7.5 Lakh
  3. Hospitalization expenses: Rs. 2 Lakh
  4. Transportation: Rs. 10, 000. This particular coverage will be given to transport mortal remains of the policy holder when he/she dies due to an accident. When the policy holder gets injured then also the sum insured will be given. Other benefit is that incidents such as terrorist attacks, dacoity, riot, shoot-out or arson, as well as for short termination, diverted route and Vikalp trains are also covered.
  5. In case of train cancellation and route change, insurer will have to pay money to the claimant.


  1. Sub-urban travellers won’t be covered
  2. Claims will be rejected if when accident takes place at location not falling between the originating and arriving station.

Claim process:

Family members will have to file for a claim within 4 months of the event. Once details are received by the insurance companies, they will have to process and pay the claimant the money within 15 days. The money will be sent via cheque to the claimant.

How to buy travel insurance on IRCTC website:

While booking train tickets, an option to select travel insurance will be offered. E-copy of the policy document will be sent on the E-mail. This insurance will be offered starting 01st September, 2016. The system will work in rotation i.e. in the first rotation 1st company will get the insurance. In the next rotation, 2nd company will get the insurance and so on.

If someone wants to buy insurance for their child then they will have to provide details such as full name, date of birth, gender, name of parents and others.

For adding nominee details, message will be displayed after the ticket is purchased. User will have to fill in nominee details which will include name, relationship, contact details and few others.

Even if traveler doesn’t have reserved ticket then also he/she would be covered.

Which companies have partnered with IRCTC to offer insurance for railway passengers?

Total 19 companies opted for bidding and following three companies were finalized:\

  1. ICICI Lombard General Insurance Company
  2. Royal Sundaram
  3. Shriram General

Should you buy IRCTC travel insurance?

Although this insurance is not mandatory, considering the negligible amount to be paid as a premium, it is worth buying travel insurance from IRCTC. No where in this world you will get such a cheap insurance policy. And imagine you are the sole earning member in the family and while travelling you die or get permanently disabled. What will happen to your family in such condition?

Travellers from which train / class will be insured?

Individual’s travelling in any class will be offered insurance. There is no restriction.

Mobile Insurance: Coverage, Exclusions, Claim Process, T&C

According to report, mobile phone market in India will reach 250 million units in the year 2016. With new launches every month with varying prices, one feature is often overlooked by the buyer is mobile phone insurance. Not many of us are aware of the importance of buying insurance for their cell phones.

Individuals are ready to shell out good amount of money on buying expensive phones but neglect paying premium, may be due to lack of awareness or confidence on nothing will happen to their phone or simply they don’t want to pay additional money. So let’s get into the basic details and terms and conditions and commonly asked queries for cell phone insurance:

Is mobile phone insured under warranty period?

Yes but is for 1 year only. But not everyone offers this. And from second year onwards, you will have to shell out extra money from your pocket in order to renew the policy.

Is mobile insurance mandatory?

No. Unlike motor insurance, cell phone users are not required to buy insurance.

What is covered under the policy?


Depending on the insurance companies, claims are settled when cell phone is stolen. Or when damage is caused due to fire, riot, accident, strike, malicious damage, and terrorism.

What are the various exclusions?

Most of the claims made are because of theft and damages. However there are various terms and conditions under both. Your claim will be rejected when theft takes place in an unattended or unlocked vehicles or during loan to any third party. Damages caused due to mechanical or electrical breakdown, self attempted repair, wear and tear, weather abnormalities, unauthorized software download, cleaning, repairing, or servicing. Damages due to nuclear peril or due to water borne vehicles are also excluded.

Before buying, individual should check the terms and conditions in detail as it will vary for each insurer.

What is claim settlement process?

  • Most important is to have a purchase invoice/bill.
  • Also keep serial number and IMEI number handy. To get these numbers, remove the battery. IMEI number is above the bar code and serial number below it.
  • If phone is stolen, then you will have to file a first information report (FIR) at the police station. And remember to file this within 24 hours of theft or loss.
  • Insurance claim should be made withing 2 days along with the claim intimation. You would be asked to produce FIR by the insurer.
  • Upon intimation, company will ask you to fill claim form.

What is the claim settlement period?

If all the terms and conditions are met and correct documentation is submitted, your claim will be settled within a month.

I want to buy insurance for my existing smartphone. Can I buy it?

Yes. But insurers haves various conditions such as OS versions etc.

Is there any depreciation value associated similar to motor insurance?

Yes. Similar to motor insurance, there is a depreciation value associated and is calculated on the basis of the market value of the device on the day it gets lost.

Who offers mobile phone insurance in India?

There are select companies which offer smartphone insurance and this includes:

  1. New India Assurance Co. Ltd.
  2. Syska Gadget Secure
  3. AppsDaily
  4. MobileAssist
  5. Times Global

So as you can above, buying a mobile phone insurance is recommended especially when the device is expensive because of the benefits offered.

Top 6 Tourist Countries with Mandatory Travel Medical Insurance

Travelling to exotic place at least once in every 3 year is everyone’s dream as it gives a big relief from the hectic schedule. In addition to this; people get to explore new places, understand different cultures and many more. However many people think that foreign trip requires just a visa and a ticket. But this is incorrect.

One most important thing people miss out is mandatory health insurance in some countries. If you don’t have medical insurance, then you won’t even get visa stamped. And even if it is not mandatory, you should always buy travel insurance covering medical expenses when visiting abroad because it provides coverage to the travelers for the following. These covers vary for each insurer:

  • Medical expenses incurred hospitalization, dental expenses, ambulance and others
  • Loss of passport
  • Flight delayed
  • Accidental death, total or partial disability, and others
  • Personal accident
  • Loss of possessions such as luggage, documents etc. and many more.

Amongst the above listed benefits of travel insurance, the most important one is the medical cover. Imagine you are going to country where cost of medical treatment is very high and you do not have medical insurance. There is a greater chance that medical cost will hurt your savings as you’ll end up paying in the other country’s local currency.

So which are the top most visited countries where health insurance is must either for students or tourists?

  1. USA: Although US offers best healthcare in the world, undergoing medical treatment over there is most expensive. This is the reason why health insurance is must for tourists in USA. For e.g. coronary bypass surgery in US costs around $1, 00,000 whereas in India it is around $7000. So you can imagine the financial risk involved when no sufficient health plan is taken.
  2. Schengen Countries: Amongst the most beautiful places in the world are in Schengen countries which include Switzerland, Greece, UK, Iceland, Spain, Germany and many others. But medical expenses in these countries are also very high compared to India. For e.g. in UK, open heart surgery costs around £20,000 but in India the same surgery will cost around £5000. So you can imagine the cost of undergoing medical treatment in these countries.
  3. UAE: The rule remains the same, no health insurance – no visa.
  4. New Zealand: NZ mandates having health insurance for visiting students.
  5. Russia: Applicant for Russian visa will be denied if health insurance is not taken.
  6. Thailand: It is a new entrant to the list as medical insurance for travelers is made mandatory by Thai tourism.

There are few other countries as well but the above listed ones are the favorite tourists destination. Even if the above listed countries require medical insurance, travelers should buy health insurance while traveling in any country. Especially when you have senior persons accompanying, you must have it. Because in case of emergency, coverage provided helps in a big way – most importantly it saves you money.

18 Differences Between PMSBY & PMJJBY & Similarities

The two social security schemes – Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) which were launched recently under Jan Suraksha Yojana has been overwhelming. The number of accounts opened under both these schemes has been over 5 crore. Although both these schemes are different yet simple to understand, there are few differences and similarities as displayed in the table below:

FeaturesPradhan Mantri Suraksha Bima Yojana (PMSBY)
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Insurance cover offered forAccidental death/disability/accidental injury
Death due to any reason
Annual PremiumRs. 12Rs. 330
Sum Assured1) Rs. 2,00,000 (for accidental death)
2) Rs. 1,00,000 (for partial disability)
Rs. 2,00,000 for death due to any reason (natural/accidental)
EligibilitySavings bank account is mustSavings bank account is must
Insurance period01st June - 31st May (Every year)01st June - 31st May (Every year)
Can one person opt for same policy more than once in same/different banksNoNo
Eligibility - Age limit18-70 Years18-50 Years
Till what age premium has to be paid
70 years50 years. But you can continue till 55 years, provided premium is paid every year
Payment ModeAuto debit from the bank accountAuto debit from the bank account
From where to buy the insurancePublic and private banks wherever you hold savings bank accountPublic and private banks wherever you hold savings bank account
Documents requiredNone. You just need to fill application form onceNone. You just need to fill application form once
Can anyone buy this policyYes. Anyone can buy irrespective of the income earnedYes. Anyone can buy irrespective of the income earned
Is money refunded if
claim is not made
Is the premium paid tax freeYesYes
Who will receive the money in case of policy holder's deathNomineeNominee
If you do not premium, will the policy lapseNoNo
Can you rejoin the scheme if you leave the schemeYesYes

As you can see with low premium comes low claim amount. But still everyone should buy these policies especially poor people; who cannot afford high premiums charged by other insurance companies in the market. In case of your absence, your family member will can benefit from this money, although small.

In India, above 70% people do not have any insurance policy. Considering the situation, these two schemes were launched.

Sum Insured:

Rs. 2 Lakh: In an event of death or total irrevocable loss of one or both the eyes/hand/feet

Rs. 1 Lakh: In an event of total irrevocable loss of sight of any one eye or loss of use of one hand/foot.


  1. Applicant should be the savings account holder of the concerned bank.
  2. Age should be between 18 – 70 years
  3. Consent for auto-debit facility is must for renewal.

Griha Suvidha Insurance Policy: Benefits, Premium, Cover

Although the takers of medical and life insurance is growing every year, home insurance is one such product which has lowest penetration in India due to lack of awareness of its benefits, complex terms and conditions, too many exclusions etc. Because of this, there are very less buyers for this very important policy. Considering the fact that India is risk prone to natural disasters like earthquake, it is very essential to consider buying home insurance which also provides cover to the valuables inside the house so that in case of any unfortunate event the losses can be covered to the maximum keeping you and your family out of financial trouble.

In order to increase home insurance penetration, New India Assurance has launched home insurance product “New India Griha Suvidha Policy” which will provide insurance cover to the household valuables of the policy holder such as jewelries, electronic products and others against natural disasters such as flooding, earthquake, fire and manmade disasters such as theft, riots, terrorist attack and others.

Premium & Cover:

There are four levels of pre-defined sum assured as mentioned in the below table:

Levels of Sum Assured
Rs. 1,00,000 to Rs. 10,00,000 resulting from fire and allied perils
Rs. 1,00,000 to Rs. 10,00,000 from burglary, housebreaking and theft
Rs. 50,000 to Rs. 4,00,000 for valuables and jewelries
Rs. 50,000 to Rs. 2,00,000 for damage to electronic appliances

The annual premium ranges from Rs. 1,175 to Rs. 7,175. You can also choose Rs 25,000-75,000 for TV/desktop cover under above 4 options. If someone wants to insurance for their house premises, then premium paid will depend on the value of the property.


  • One of the biggest benefits of Griha Suvidha policy is that the declaration of valuables is not required. And claims would be settled upto the level of sum assured. i.e. Insurance buyer does not have to produce list of items in the house, purchase bill of the items showing value of each item, ownership proof that are covered in the policy. This makes the policy stand out from the existing policies available in the market.
  • During claim settlement, original bills etc. won’t be asked by the insurer.

What Griha Suvidha insurance policy will not cover:

This policy will not cover the following:

  • Loss of cash
  • Documents
  • Securities
  • Motor vehicle and others

Before buying this policy, buyers are requested to read all the exclusions in detail.

Claim settlement:

For claim amounts higher than Rs. 20,000 the company would take help of surveyors who will personally visit the site of damage and assess the loss. However if the claim amount is less than Rs. 20,000, the settlement would be automatic.

Other insurance products in the market covering contents of the house:

There are many insurance companies offering cover for household contents but all require producing valuables and their price, proof of product ownership etc. Here are the few companies who provide coverage for valuables in the house:

  • Oriental Insurance: Houeholder Insurance Policy
  • HDFC Ergo: Home Insurance
  • Royal Sundaram: Home Content Insurance
  • IFFCO-Tokio: Home Suvidha Policy
  • ICICI Lombard
  • Bajaj Allianz: My Home Insurance

Suraksha Bima Yojana: Application/Consent Form

Pradhan Mantri Suraksha Bima Yojana (PMSBY) which is India’s cheapest accident insurance policy was launched on 09May 2015 by Prime Minister Shri Narendra Modi. The scheme will offer a cover of Rs. 2,00,000 and Rs. 1,00,000 provided the premium of Rs. 12 is paid every year to the bank. This annual premium would be auto-debited from the savings bank account of the policy holder between 23rd May to 31st May every year. Read in detail about the features of PMSBY.

However banks would need the policy holder’s consent for auto-debit, sharing their information with the insurance company and declare a nominee. For this, an individual needs to fill the consent form (displayed below) which is available in English/Hindi and other regional languages.

You can visit the bank where you hold an savings bank account and get the above application form for PMSSBY, fill it correctly and submit. Bank will then provide you acknowledgement slip.

Suraksha Bima Yojana - Application Form

Latest update:

  1. Most of the banks have started sending SMS to their account holders for getting enrolled in the scheme.
  2. Initially the scheme will be valid from 01st June, 2015-31st May, 2016.
  3. Government has urged banks to enrol 10 crore people in the social security schemes which also includes Atal Pension Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana
  4. After the super successful Jan Dhan Yojana, these three schemes are also assumed to create big financial inclusion and security to the poor people.

RuPay Card Insurance Cover of Rs. 1,00,000 & 2,00,000

RuPay debit card holders get personal accident coverage (death due to accidental injury and permanent disability) in case of accidents occurring because of:

  • Travelling by train, aeroplane and water accidents
  • Snake Bite
  • Electric current shock
  • It does not cover natural deaths or due to any disease etc.

Who will offer the coverage:

Insurance will be provided only till March 2016 and offered by New India Assurance. For the year 2014-2015, the insurance was provided by HDFC Ergo. There are two types of coverage offered for the:

  • Rs. 1 Lakh to the classic card holders
  • Rs. 2 Lakh to the premium RuPay card holders. This is offered by HDFC bank (as of now) offering various benefits such as 5% cash back on paying the utility bills, 1% fuel surcharge is waiver and many offer. You can check the benefits here.

Condition for making a claim:

  1. RuPay card holders who has made minimum one transaction using the RuPay card 45 days before accident took place can only claim for the insurance. Transaction at any of the following places will be acceptable – ATM, online shopping, Micro ATM of the card issuing banks.
  2. Insurance is offered to individuals within the age group 18-65 years.
  3. Even if accident takes place outside of India, the cover will be offered.
  4. Beneficiary of the claim amount can be any family member or legal heir or nominee.

Claim process for accidental death and injury:

  1. Before New India Assurance this insurance was offered by HDFC Ergo. The claim process involved intimating HDFC Ergo within 30 days of the accident and submission of all the claim related documents within 60 days of accident took place.
  2. Claimant needs to fill statement form consisting of his/her details of the policy, address and claim information (i.e. details of accident, time, place, injury details etc), whether insured has taken accident insurance from any other company. Forms for accidental death and injury are different although the details required are almost the same.

About RuPay Card:

RuPay (Rupee + Payment) is India’s first locally designed and developed debit card offered by National Payments Corporation of India (NPCI). Until now, Indians have been using Mastercard, Visa enabled card carrying high transaction charge. But there are many differences between RuPay and Mastercard apart from the transaction charges. And the card is accepted at most of the online shopping sites, and booking train tickets and many more.

RuPay card was offered free of cost to all the individuals who opened account under Pradhan Mantri Jan Dhan Yojana (PMJDY). This scheme also offers overdraft facility of Rs. 5000. This yojana was enlisted in Guinness world record for opening over 12 crore bank account within the shortest time span. PMJDY is a part of social security scheme which also includes Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY).