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Most credit cards offer complimentary air accident insurance if the flight ticket is booked using the same card.
To claim the benefit, the cardholder must meet specific conditions. (Representative Image)
Credit cards are widely used for payments, but many users are unaware of the benefits they offer. One such benefit is air accident insurance, which can provide financial support to a cardholder’s family in the event of a tragic air accident.
The recent Air India AI 171 crash in Ahmedabad has brought this lesser-known feature into the spotlight. Though rare, such incidents highlight the importance of being informed about this benefit.
What Is Covered?
Most credit cards offer complimentary air accident insurance if the flight ticket is booked using the same card. However, this benefit only covers the primary cardholder. It does not extend to family members or add-on cardholders.
For example, IndusInd Bank’s Avios, Tiger, and Pinnacle cards offer Rs 25 lakh in coverage. Premium cards like HDFC INFINIA, SBI Aurum, and American Express Platinum Charge card offer Rs 3 crore, Rs 3.5 crore, and Rs 5 crore, respectively.
Terms and Conditions Matter
To claim the benefit, the cardholder must meet specific conditions. The credit card must be active, meaning there should be at least one eligible transaction within a set period.
IDFC First Ashva: One transaction in the last 30 days for Rs 1 crore coverage
ICICI Rubyx: One transaction in the last 60 days
AU Zenith Plus: Transaction within the last 180 days
As Ankur Mittal of Card Insider explains, terms vary by issuer, and it’s important to read policy documents carefully. Note that air accident insurance does not cover acts of terrorism.
Claiming the Benefit
If a cardholder dies in an air accident, the nominee or family must report the incident within the required time and submit documents like the death certificate and claim form.
Claim windows differ:
Yatra SBI Card and AU Zenith Plus: 90 days
ICICI Sapphiro, Emeralde, Times Black, and Diamant: 60 days
Some cards, like Tata Neu Infinity and HDFC Regalia, provide coverage if death occurs within 12 months of the injury.
Major Update: SBI Card to End Coverage
From July 15, SBI Card is removing air accident insurance on cards like ELITE, Miles ELITE, and Miles PRIME. Rs 1-crore and Rs 50-lakh coverages will be withdrawn. Co-branded SBI cards will lose this benefit starting August 11.
The policy for Tata Neu Infinity and HDFC Regalia is valid until July 22, subject to bank terms.
Staying informed can help cardholders and their families claim benefits when it matters most.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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Delhi, India, India
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