From July 15, 2025, an important rule change will affect many people who use the Jan Dhan Yojana or have Rupay debit cards. The ₹1 crore free accident insurance cover, which was being given earlier, will now be discontinued. This decision has been taken by the National Payments Corporation of India (NPCI) and will directly impact account holders linked with Rupay cards.
Let us understand this rule in simple words and what changes you need to be aware of.
What Was the Jan Dhan Yojana ₹1 Crore Insurance Benefit?
Earlier, if you had a Rupay debit card, you were eligible for a free accident insurance cover of up to ₹1 crore (depending on card type).
Jan Dhan Yojana This benefit was given to promote digital banking under the Pradhan Mantri Jan Dhan Yojana. It included Personal Accident Insurance (PAI), which helped families in case of the cardholder’s accidental death or permanent disability.
There were two major categories:
- Rupay Classic Card – Insurance up to ₹2 lakhs
- Rupay Premium Cards (like Platinum) – Insurance up to ₹10 lakhs to ₹1 crore
But now, this benefit is going to end soon.
What is Changing from July 15?
According to the new NPCI circular:
- The free ₹1 crore accident insurance linked to Rupay Cards will be discontinued.
- This rule will be effective from July 15, 2025.
- This will not apply to claims that happen before July 15, even if claimed later.
Why Is This Rule Being Changed?
The main reasons are:
- Low usage – Many cardholders were not aware of the benefit or never used it.
- Cost factor – The government or banks had to bear the cost of the insurance premium.
- Policy review – NPCI and insurers are reviewing such old benefits to reduce unnecessary expenses.
Who Will Be Affected?
- People who have Rupay Debit Cards (especially premium types)
- Jan Dhan Account holders who had automatic insurance cover
- Families who depend on this benefit for emergency situations
If you fall in any of the above categories, you will no longer get insurance support through your Rupay card after July 15.
Summary Table: Before vs After July 15
| Feature | Before July 15, 2025 | After July 15, 2025 |
|---|---|---|
| Free Insurance Coverage | Up to ₹1 crore | Not available |
| Applies to | Rupay Premium card users | No users |
| Claim Validity | If accident before July 15, claim is valid | Not valid for accidents after July 15 |
| Jan Dhan Users Benefit | Yes | No |
What Should You Do Now?
- Check your card type
- If you have a Rupay Classic or Premium card, understand what coverage you have until July 15.
- Explore other insurance options
- Consider buying personal accident insurance from LIC or any private insurer. Policies are available from ₹200/year onwards.
- Talk to your bank
- Banks may offer alternate insurance plans with debit/credit cards. Ask your branch.
- Inform family members
- Make sure your family knows about this rule change so they do not depend on a benefit that won’t exist.
Final Words
The removal of the ₹1 crore insurance benefit from July 15 is a big change, especially for low-income families and rural users who depended on it. This was one of the most attractive features of Rupay cards under the Digital India push.
But now that it’s being discontinued, it is important that you take action early. Plan ahead by choosing other insurance policies and making your family aware. Don’t wait until an emergency happens.
