In India, many banks offer free accidental insurance to debit card holders, allowing them to secure coverage from ₹1 lakh to ₹20 lakh. This benefit is significant as it doesn't require any additional premium payments, making it accessible to a large segment of the population. Most people possess debit cards today, yet many are unaware of the financial safety net these cards provide.

Major banks such as SBI, ICICI, HDFC, and Axis Bank offer varying insurance amounts depending on the type of debit card held. For example, holders of regular or classic debit cards can receive up to ₹1 lakh in coverage, while those with platinum or premium cards can obtain between ₹2 lakh to ₹5 lakh. This tiered approach encourages customers to opt for higher-tier cards to access increased insurance benefits, thereby enhancing their financial security.

The implications of such a scheme are far-reaching; it not only boosts customer loyalty to banks but also elevates financial literacy among the general populace, as awareness of these benefits grows. Given the rise in digital banking and card usage, promoting these insurance offerings could lead to a more informed customer base that values the importance of financial security.