NewsCorporate ActionsSBI Card Discontinues Air Accident Insurance on Co-branded Cards, Revises Billing ProcessSBI Card Discontinues Air Accident Insurance on Co-branded Cards, Revises Billing Process
By ScanX News Team
SBI Cards is discontinuing complimentary air accident insurance on several co-branded credit cards from August 11. The affected cards include those offering ₹1 Crore and ₹50 Lakh coverage. Additionally, SBI Card has revised its billing processes effective July 15, changing the Minimum Amount Due calculation and the order of payment adjustments. The new MAD now includes full GST, EMIs, fees, charges, finance charges, over-limit amounts, and 2% of remaining unpaid balance. The payment adjustment order now prioritizes GST, followed by EMIs, fees, charges, finance charges, balance transfers, retail transactions, and cash advances.
*this image is generated using AI for illustrative purposes only.
SBI Cards , a leading credit card issuer in India, has announced significant changes to its offerings and billing processes, affecting various co-branded credit cards and customer payment structures.
Discontinuation of Complimentary Air Accident Insurance
Effective August 11, SBI Card will cease providing complimentary air accident insurance coverage on several of its co-branded credit cards. This change impacts a range of cards offering substantial coverage:
₹1 Crore Coverage Cards:
- UCO Bank SBI Card ELITE
- Central Bank of India SBI Card ELITE
- PSB SBI Card ELITE
- KVB SBI Card ELITE
- KVB SBI Signature Card
- Allahabad Bank SBI Card ELITE
₹50 Lakh Coverage Cards:
- Various PRIME and Platinum variants across multiple partner banks
This move represents a significant shift in the value proposition of these co-branded cards, potentially affecting cardholders who valued this insurance benefit.
Revised Billing Processes
In addition to the insurance changes, SBI Card has implemented new billing processes effective July 15. These revisions alter how the Minimum Amount Due (MAD) is calculated and the order in which payments are adjusted:
New MAD Calculation
The Minimum Amount Due now includes:
- Full GST
- EMIs
- Fees
- Charges
- Finance charges
- Over-limit amounts
- 2% of the remaining unpaid balance
Modified Payment Adjustment Order
SBI Card has revised the sequence for adjusting payments, prioritizing in the following order:
- GST
- EMIs
- Fees
- Charges
- Finance charges
- Balance transfers
- Retail transactions
- Cash advances
These changes in billing processes and payment adjustments are likely to impact how customers manage their credit card payments and balances.
The discontinuation of the air accident insurance coverage and the revisions to the billing process represent significant changes in SBI Card's offerings and operations. Cardholders of the affected co-branded cards and SBI Card users, in general, are advised to review these changes and understand how they might impact their credit card usage and benefits.
Historical Stock Returns for SBI Cards
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.30% | -0.68% | -8.38% | +17.89% | +21.63% | +18.36% |
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