Many credit cards offer a range of benefits beyond just purchasing power, and one such perk that often goes unnoticed is air accident insurance. This coverage provides financial protection to the cardholder or their beneficiaries in the unfortunate event of death or disability resulting from an air accident. While the specifics vary from card to card, understanding the key aspects of this insurance can help you determine if it's a valuable benefit for you.
Air accident insurance, offered as a complimentary feature on many mid-range and premium credit cards, is designed to provide financial security in the event of an air accident. Typically, the card issuer, in association with an insurance provider, offers this coverage to the primary cardholder. The coverage is generally applicable only if the flight ticket is purchased using the same credit card.
The coverage amount can vary significantly depending on the credit card. For example, some cards may offer coverage up to ₹1 crore, while others may go as high as ₹3 crore or even ₹5 crore. It's crucial to check the specific terms and conditions of your credit card to understand the extent of the coverage. Some cards offering this benefit include the ICICI Rubyx, HDFC Diners Club Privilege, SBI KrisFlyer, and American Express Platinum Charge.
It's important to note that air accident insurance typically covers only the primary cardholder and does not extend to add-on cardholders or family members, although this can vary. Policies usually offer a lump sum payout in the event of death or disability resulting from a flight accident. Some policies may also cover hospitalization and emergency medical evacuation expenses.
To make a claim, the legal nominee or next of kin of the insured must report the incident within a specific timeframe, often within 60 to 90 days, to be eligible for the claim. Additionally, most policies exclude incidents related to terrorism. Some policies also exclude coverage for pilots, armed forces, police, and air crew.
Recently, some card issuers have been revising their offerings. For instance, SBI Card will discontinue complimentary air accident insurance on several of its credit card products, including SBI Card ELITE and SBI Card PRIME, starting July 15, 2025. Following this, on August 11, 2025, several co-branded cards will also see this benefit removed.
Before relying on your credit card's air accident insurance, carefully review the terms and conditions. Pay close attention to the coverage amount, exclusions, claim procedures, and any specific requirements, such as using the card to purchase the flight ticket. Consider whether the coverage is sufficient for your needs and whether it complements other insurance policies you may have.
Air accident insurance can provide peace of mind, but it's essential to be aware of its limitations and ensure it aligns with your overall insurance strategy. With some companies removing this perk, cardholders should be aware of these changes.
