SBI Card to withdraw complimentary air-accident insurance on select cards

SBI Card to withdraw complimentary air-accident insurance on select cards

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26 Aug, 2025 12:21

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SBI Card has announced that it will discontinue the complimentary air accident insurance benefit on several of its credit card variants, starting July 15, 2025, according to several posts on X platform.

This move will impact those using premium cards like SBI Card Elite, SBI Card Miles Elite, and SBI Card Miles Prime, all of which currently offer Rs 1 crore insurance coverage. Other cards such as SBI Card Prime and SBI Card Pulse, which currently provide Rs 50 lakh coverage, will also lose this benefit.

This policy update means that several SBI cardholders who previously relied on the complimentary air accident insurance will no longer have that layer of financial protection.

Emails sent to SBI Card remained unanswered until the time of publishing of the article.

The change will not be limited to SBI-branded cards.

Several co-branded credit cards will also see the withdrawal of air accident insurance starting August 11, 2025.

This includes Rs 1 crore cover being removed from variants such as SBI ELITE cards issued in partnership with UCO Bank, Central Bank of India, Punjab and Sind Bank, Karur Vysya Bank, and Allahabad Bank.

Meanwhile, co-branded PRIME and Platinum cards issued with banks like South Indian Bank, Karnataka Bank, City Union Bank, Oriental Bank of Commerce, Federal Bank, and Bank of Maharashtra will lose Rs 50 lakh coverage.

In addition to the insurance benefit revision, SBI Card is updating its payment structure policies.

Effective July 15, the calculation for the Minimum Amount Due (MAD) will include 100 percent of applicable GST, EMIs, fees, finance charges, over-limit amounts (if any), plus 2 percent of the remaining outstanding balance.

The payment allocation order has also been revised.

Payments will now be settled in the following sequence: GST, EMIs, fees and charges, finance charges, balance transfers, retail transactions, and finally, cash advances.