SBI Card to Discontinue Free Air Accident Insurance on Select Co-Branded Cards from August 11

🧾 Major Update: SBI Card Withdraws Free Air Accident Cover from August 11, 2025

SBI Card, one of India's leading credit card issuers, has announced a significant policy revision impacting multiple co-branded credit cards. The company will discontinue the complimentary air accident insurance cover that has been provided on several cards, starting August 11, 2025.

This insurance benefit, which offered coverage of up to ₹1 crore or ₹50 lakh, has been available on selected ELITE and PRIME cards issued in partnership with public and private sector banks. However, going forward, cardholders will no longer be eligible for this protection.

🛑 Which Cards Are Affected?

The following co-branded SBI credit cards will no longer offer free air accident insurance after the changes take effect:

• Karnataka Bank SBI Card PRIME

• Karnataka Bank SBI Platinum Credit Card

• City Union Bank SBI Card PRIME

• Allahabad Bank SBI Card PRIME

• United Bank of India SBI Platinum Credit Card

• Oriental Bank of Commerce (OBC) SBI Visa Platinum Card

• Federal Bank SBI Platinum Credit Card

• Bank of Maharashtra SBI Platinum Credit Card

These cards previously included complimentary air travel insurance coverage, a benefit especially appreciated by frequent flyers. SBI Card has confirmed that this change aligns with its revised product policies and risk management practices.

🔄 Changes in Billing System from July 15

In addition to discontinuing insurance benefits, SBI Card has already introduced a revised billing and payment system effective from July 15, 2025. Here’s what has changed:

📌 Revised Minimum Amount Due Calculation

The new calculation for the minimum amount due includes:

• Entire GST amount

• Any ongoing EMIs

• Applicable fees and charges

• Finance charges

• Overlimit amounts

• 2% of the remaining balance

This means customers will now need to pay more as part of their minimum due compared to the earlier system, potentially affecting their cash flow if not planned properly.

💳 Updated Payment Adjustment Order

When a customer makes a payment, SBI Card will now adjust the amount in the following order:

GST

EMIs

Fees and other charges

Finance charges

Balance transfer amount

Retail purchases

Cash advances

This new method may influence how fast certain balances—especially those with high-interest rates—are cleared.

⚠️ What Should Cardholders Do?

If you currently own one of the affected SBI co-branded cards, it is highly recommended to review the updated terms and conditions before August 11, 2025. Here's what you should consider:

• Evaluate whether the card still meets your travel and financial needs.

• Consider switching to a card that offers active travel insurance benefits, if that’s important to you.

• Keep track of changes in billing practices to avoid interest accrual or late fees.

• Reach out to SBI Card customer care for clarification on how these changes affect your specific card.

🧠 Expert Tip

“Insurance benefits like air accident coverage have been a significant selling point for premium cards. With their removal, it’s vital that users reassess the value they get from such cards. Travel-savvy customers might want to explore third-party travel insurance or credit cards from issuers that still provide such perks,” says a senior finance advisor.

🛡️ Disclaimer:

This article provides general information on financial products and services. Please contact your card issuer or financial advisor for specific advice related to your credit card and insurance coverage.