Hospitalisation cover for ATM attack victims unlikely soon

Most insurers only provide for liabilities associated with theft and damage to the ATM

Banks have been told to provide round-the-clock security at automated teller machine (ATM) kiosks across the country. While most banks have insurance cover for thefts or other untoward incidents at ATMs, hospitalisation cover for victims of attacks at ATMs may not be provided any time soon.

Officials said the attack on a woman at an ATM in Bangalore showed those who used these facilities regularly were vulnerable to such attacks. “Most insurers provide cover for ATMs, but only for the liabilities associated with thefts and damage to the machine. Individual customers are not provided cover for any medical expenses incurred due to physical attacks during the use of ATMs,” said the general manager of a large public general insurer.

Officials of general insurance companies said as covers were already provided for ATM machines, this could easily be extended to the person(s) using ATM services. “Most banks cover the liability for loss of debit cards due to thefts. However, we are ready to provide covers for customers using ATMs against physical damages and limited hospitalisation expenses due to injuries. But banks will have to work out the cost model for this policy,” said a senior official at a public general insurer.

Tata AIG General Insurance offers ATM assault and robbery insurance, which covers the amount withdrawn one might lose due to a robbery within 15 minutes of the transaction. It also provides emergency first aid expenses if one is injured during the robbery.

“Many banks provide personal accident covers as value additions to their credit and debit card customers. Such personal accident policies also provide cover against attacks on individuals while using ATMs. Though these provide compensation for accidental deaths, cover against injury could be difficult due to high cover prices,” said M Ravichandran, president (insurance), Tata AIG General Insurance.

Officials said some insurance companies were in talks with banks to arrive at a pricing mechanism for a comprehensive cover for injuries and accidents at ATMs. The chief executive officer of a mid-sized private general insurance company said once introduced, this would cover all accidental liability from ATM usage.

“This could provide protection against card-related fraudulent transactions, robberies and attacks on individuals. In the later stages, hospitalisation of up to a month may also be provided,” he added.