New India Bags NPCI Deal to Give Cover for RuPay Holders

The National Payments Corporation of India (NPCI) will sign an agreement with New India Assurance for providing personal accident cover to RuPay cardholders. Government-backed New India Assurance was one of nine applicants that had bid for the contract. NPCI is the country’s largest payments company. It has issued 150 million RuPay cards that carry free personal accident cover of ` . 1 lakh. Till last fiscal, non-life company HDFC Ergo had partnered NPCI for this cover.

AP Hota, managing director and chief executive of NPCI, confirmed to ET that the company has appointed New India Assurance for a term of one year. “The premium for the cover will be borne cover will be borne by NPCI and not be passed on to the cardholders or the banks,“ he said. According to people aware of the development, NPCI has retained the critical clause of `45 daysswipe’ for any cardholder to make a claim for the sum insured. This condition -which meant that a which meant that a customer has to swipe at least once in 45 days to be eligible for the cover -was a bone of contention between the card issuer and the government. NPCI has been of the view that such a condition will prompt customers to keep the card active.

This time, to make the policy more customer-friendly, the agreement says that even those transactions done within 45 days with the business correspondent will be treated as a card transaction for RuPay cardholders to make a claim for thecover.

So far, a card swipe included only those transactions that were at point of sale (PoS) machines and ATMs. Executives from NPCI said that there are now 126,000 microATMs in the country and banks are in the process of making these terminals RuPay-enabled.

The insurance cover for the RuPay card gains significance since it is attached to the prime minister’s pet project, `Jan Dhan Yojana’, which aims to provide bank services at an affordable price to economically weaker section of the society.

Source: Economic Times

Date: 8-4-2015

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