Why Insurers Reject Accidental Death Benefits Linked to Cards

While your father used his debit card for ATM withdrawals, most insurers and banks don't count these or UPI payments as valid transactions to keep accidental death insurance active.

- Shilpa Arora

The insurance remains valid only if the cardholder made a purchase—swiping in-store or online—within 30 to 90 days before the incident. Many miss this rule, as UPI has become common. Despite regular account use, no qualifying purchase can lead to claim denial.

This issue stems from poor communication. Banks often don't provide a certificate of insurance or clearly explain eligibility conditions when issuing the card. Many assume all card activity counts. Check if your father made any eligible debit card purchases within 90 days before the incident. If yes, request a claim review with transaction records. If not, the claim likely doesn't meet the insurer's criteria.