General insurance company HDFC Ergo has received a contract from the Reserve Bank of India-promoted National Payments Corporation of India (NPCI) to provide insurance cover to all RuPay cardholders.
The contract is valid for a period of three years, reports The Economic Times.
As per the deal, all RuPay cardholders will be offered an insurance cover of INR0.1m by HDFC Ergo and can be claimed in case of death or permanent disability.
Cardholders of RuPay can claim their cover only if the card is active. A card will be treated as active, only if is swiped within 45 days of making a claim.
NPCI is also negotiating with HDFC Ergo to improve the scheme, in order to provide the claim if it had been swiped 90 days before.
NPCI CEO and MD AP Hota was quoted by the publication as saying: "We are in the process of simplifying the claims procedure and also making customers more aware of their procedure to make claims."
The company has issued around 2.3 crore cards and is expecting that 15 crore new bank accounts will be opened and more number of cards would be issued in the unbanked areas by March 2016.
The cardholder will not be required to pay the premium. It will be paid by NPC.