My father worked in the armed forces and recently had an accident that he could not survive. I was told that there was a casual death cover of £ 5 lakh in his debit card, but the same was denied that there had been no active transaction over the past 90 days. But my dad uses the card for cash withdrawal and I showed them the records, but are they not ready to settle? -Name withholding on request while your father actively used his debit card for withdrawals from the ATM, it is important to know that most banks and insurers do not treat ATM withdrawals or UPI payments as valid transactions to keep the free casual death insurance active. According to standard policy conditions, this insurance cover remains valid only if the cardholder has done a purchase transaction – either by wiping the debit card at a physical store or making an online payment with the card – within 30 to 90 days before the incident. This requirement is often missed, especially today when UPI is the most common payment. Many people are unaware that the lack of a qualifying purchase transaction despite the regular use of the bank account and card can lead to denial of the claim. It is a widespread issue that is largely caused by insufficient communication. Banks usually do not issue an insurance certificate (COI), or explain the conditions for maintaining the qualification at the time the card was issued. Consequently, many cardholders mistakenly accept that all card activity qualifies. See if your father is eligible for debit card within the 90 days before the incident (at a store or online). If he did, you can request a claim review and provide transaction records as proof. If not, it is likely that the claim unfortunately does not comply with the insurer’s activation criteria. My life insurance policy has expired. Do I have to reinstate the old policy or is it better to buy a new one? – The name that is withheld upon request is a more practical and financially beneficial decision than buying a new one, especially if you are still within the revival window, which typically extends up to five years from the expiration date. By reviving your old policy, you retain the original conditions, including the amount, the premium amount and the policy term. For participating policy, revival also means the conservation of any bonuses that have accumulated before the decline – benefit that would otherwise be lost if you choose a new policy. Continuing with the same policy ensures that the progress you have made, especially if you are good in the policy term or the most important milestones, does not waste. However, insurers generally need a health statement at the time of the revival and may also ask for medical tests, especially if there has been a significant amount of time since the decline, or if there have been significant changes in your health. On the other hand, the choice to buy a new policy comes with certain disadvantages. You will lose all the premiums paid to the dilapidated policy and forfeit any bonuses that were possible. As your age has increased and the underwriting norms may have changed, the premiums for a new policy are likely to be higher. There may also be exclusions or charges based on your current health profile, which can reduce the value of the coverage you receive. Unless the existing policy no longer matches your financial goals or coverage needs, this is mostly the more advantageous option. This allows you to maintain continuity and maximize the value of the investment you have already made. (Shilpa Arora is co-founder and COO of the Insurance Samadhan.)
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