Citibank Suraksha bundles insurance, credit card

Our Banking Bureau

Mumbai, Aug 31: Citibank on Friday announced Citibank Suraksha, a twin benefit insurance plan offering its card members a ‘credit shield’ and ‘personal accident insurance’ from Tata AIG Life and Royal Sundaram Alliance.

This is the first instance of a bank bundling together insurance and credit card benefits.

The package provides for a personal accident insurance cover of Rs five lakh (for classic card holder) and Rs 25 lakh (for gold card holder) to be paid to the beneficiary in the event of the card holder’s demise or permanent disability as a result of an accident. This even as the credit shield exempts card holders from having to pay outstandings up to a limit of Rs one lakh (for classic card) and Rs 2.25 lakh (for gold card) in the event of the card holder demise”.
Citibank Suraksha is a group insurance package which Citibank has bought from Tata AIG and Royal Sundaram Alliance exclusively for its card members.

The group insurance policy allows Citibank to provide its card members with benefits like lower pricing, no medical check-up, no cumbersome paper work and no need to keep track of premia as it gets automatically debited to the card member’s account.

Said Citibank India’s consumer business head, Sarvesh Sarup, “Citibank Suraksha is the first insurance package of its kind to offer individuals the dual benefits of credit shield and personal accident insurance cover. We are proud to be the first to bring this world class offering to our card members. With this exclusive package, Citibank achieves yet another milestone in offering our customers the best range of financial services, while retaining our cutting edge in customer service and convenience.”

An individual cover for Rs five lakh (for classic card member) would normally attract a premium of about Rs 600 per annum. Under Citibank Suraksha, the individual would need to pay only Rs 348 per annum, a saving of 42 per cent. Similarly, an individual cover for Rs 25 lakh (gold card member) would normally attract a premium of about Rs 3,000 per annum. Under Citibank Suraksha the individual would need to pay only Rs 1,020 per annum, a saving of 66 per cent.
The premium is divided into three parts — a personal accident cover of Rs 14.70 per month for an insurance cover of Rs five lakh, or Rs 73.50 per month for an insurance cover of Rs 25 lakh, an administration fee of Rs 15 per month and the credit shield.