Kotak Mahindra Bank to end complimentary debit card insurance from July

Kotak Mahindra Bank will discontinue its complimentary debit card insurance benefits, including accidental death and purchase protection, from July 2025. Customers are urged to review their coverage

Kotak Mahindra Bank has announced that it will discontinue all the complimentary insurance benefits associated with its debit cards, effective July 20. The bank has communicated this change directly to its customers via email and SMS, urging them to review the updated terms and conditions.

 

Key insurance benefits that will be discontinued

 

Previously, the bank offered the following insurance benefits to its debit cardholders: 

Personal accidental death cover: Coverage up to Rs 15 lakh, applicable in case of accidental death due to rail or road accidents.

 

Lost card liability: Protection against unauthorised transactions up to Rs 6 lakh, depending on the card variant.

 

Purchase protection: Coverage for loss of goods purchased using the debit card, up to Rs 1.5 lakh, within 60 days of purchase.

 

Lost baggage insurance: Coverage up to Rs 1 lakh for loss of baggage during travel, provided the travel ticket was purchased using the debit card.

 

Air accident insurance: Coverage up to Rs 5 lakh for accidents occurring during air travel.

 

These benefits were provided through partnerships with insurance providers such as United India Insurance Co. Ltd. and Zurich Kotak General Insurance Co. Ltd., with policy terms typically spanning one year.

 

In its communication, the bank has assured customers that all insurance claims submitted before July 20 will continue to be processed as per the existing terms and conditions.

 

Cardholders are encouraged to review their current insurance coverage and consider alternative options to ensure continued protection.

 

Why the change? 

The bank has not provided any explanation regarding the reasons for these changes. However, such revisions are often part of a broader strategy to align banking products with evolving market conditions or to refocus resources.

 

What should customers do? 

Review your benefits: Customers should check the insurance benefits currently associated with their debit cards and understand the full extent of the coverage.

 

Look for Alternatives: Those who relied on the bank’s insurance coverage may need to start looking for standalone insurance policies that offer similar benefits.

 

Stay Updated: Keeping an eye on further communication from Kotak Mahindra Bank will be essential to stay informed about any future changes to services and benefits.

 

(Disclosure: Entities controlled by the Kotak family have a significant shareholding in Business Standard)