Credit cards: Get reward points from these cards by paying insurance premium
Reward points are incentives that credit card issuing companies provide to customers to promote loyalty. When cardholders make a purchase they earn points, which is usually accumulated over a period of time and then redeemed for different types of rewards such as travel miles or cash backs, merchandise or gift cards.
Kolkata: Most credit cards offer reward points. The number of reward points a cardholder earns depends on the amount of money the cardholder spends with a card. Needless to say, the higher the expenditure through the credit card, the more the reward points. Once a sufficient number of points are accumulated, cardholders can redeem them for a variety of rewards offered by the credit card company.
Usually, to increase the reward points collected through credit cards, many pay utility bills and conduct routine household purchases from groceries and petrol/diesel for vehicles through credit cards. Significantly, a few credit cards also incentivise the payment of insurance premiums. But some of these cards subject the rewards to ceilings and/or conditions. Let's have a close look.
SBI Card: SBI Card is the second-biggest credit card issuer in the country and it enjoys a market share of about 19% at the end of FY25. Reports state that SBI Card offers a number of cards including Ola Money credit card, Simply Click Credit Card, Tata Neu Infinity Credit Card and Titan Credit card which gives 1-1.5% reward points if insurance premium is paid through -these cards.
HDFC Cards: HDFC bank is the biggest issuer of credit card in the country. The Infinia Metal Edition card, Diners Club Black Metal card, HOG Diners Club card offer reward points paid vis these cards. The rate is five reward points on every Rs 150 spent. These are premium cards. Among the non-premium cards, 6E rewards Indigo credit card and 6E rewards XL- Indigo credit card offer reward points for insurance payment. Other credit cards from HDFC Bank through which one can earn reward points for insurance premium payment are Diners Club Privilege Credit Card, Marriott Bonvoy Credit Card and Millennia Credit Card.
Axis Bank: Aura credit card which is issued by Axis Bank, offers Rs 10 for every Rs 200 on premium of insurance but within a ceiling of Rs 10,000.
ICICI Bank: Amazon Pay Credit Card and MMT Credit Card, both of which are issued by ICICI Bank offers reward points for payment of insurance premium. Amazon Pay Credit Card offers 1% cashback. MMT Credit Card allows 1 MyCash for very Rs 100 spent. The annual fee for this card is Rs 999.
IDFC First Bank: This bank issues LIC Class credit card. It is clear from the name that it is a co-branded credit card with LIC. It offers six reward points for every Rs 125 paid to LIC as premium of policies.