Cardholders Alert: Kotak Mahindra Bank Tweaks Insurance Benefits From Its Debit Cards; Check Key Details

Kotak Mahindra Bank has announced nan impending removal of respective security benefits associated pinch its debit cards. This alteration will importantly impact nan bank's cardholders, arsenic they will suffer entree to notable protections, including individual mishap cover, acquisition protection, and mislaid baggage coverage. These benefits person been a captious information nett for galore users during unexpected incidents related to recreation and purchases. All security claims submitted earlier July 20, 2025, will proceed to beryllium processed arsenic per nan existent procedure.

With nan Kotak Mahindra Debit Card, relationship holders are protected successful lawsuit of accidental death. This argumentation offers financial support to nan beneficiary aliases ineligible heir of nan cardholder successful nan arena of decease caused by an accident. The magnitude of screen provided is fixed according to nan paper version held by nan customer, pinch a maximum sum of up to Rs. 15 lakhs for accidental decease owed to obstruction aliases roadworthy accidents. To support this coverage, nan cardholder must meet circumstantial eligibility requirements.

Additionally, Kotak Mahindra Debit Card holders tin use from Air Accident security (up to Rs. 5 lakh) and Lost Card Liability (up to Rs. 6 lakh), depending connected nan paper version they hold. It is important to beryllium alert of nan position and conditions that travel into effect erstwhile making an security declare against nan debit card.

Besides, mislaid baggage security was available, offering up to Rs. 1 lakh successful nan arena of baggage nonaccomplishment during travel, provided nan recreation tickets were purchased utilizing nan Kotak Mahindra debit card. Purchase protection besides covered nan nonaccomplishment of equipment wrong 60 days of purchase, up to a limit of Rs. 1.5 lakh, contingent upon nan type of debit paper used.

These security benefits were taxable to circumstantial position and conditions, which cardholders could reappraisal connected nan bank's website anterior to filing immoderate security claims. With nan withdrawal of these benefits, customers are advised to analyse their existent sum position and research replacement options if necessary.

The banking manufacture has seen security benefits connected debit cards go a modular offering to heighten customer loyalty and differentiation among competitors. Kotak Mahindra's determination to destruct these benefits comes arsenic a notable shift, peculiarly erstwhile galore banks leverage specified features to pull and clasp clients. While competitors whitethorn proceed to supply extended sum options, Kotak Mahindra Bank’s withdrawal could effect customer perceptions and restitution arsenic these protections are removed.

Credit paper terms

Starting June 1, 2025, Kotak Mahindra Bank will instrumentality a revised Cardholder Agreement that brings important changes to liking charges, interest structures, minimum magnitude owed (MAD) calculations, and rewards programmes. 

One of nan awesome updates is nan summation successful monthly finance charges connected astir in installments cards—from nan existent 3.50% (42% annualised) to 3.75% (45% annualised). However, premium cards specified arsenic Kotak White Reserve and Kotak Solitaire will proceed to clasp their existing liking rates.

Published on: May 10, 2025 6:26 PM IST