What Is A Credit Card Protection Plan And How Does It Work?

Credit cards have always been a highly popular and reliable alternate currency, providing access to instant credit in an instance. Cardholders can pay for daily goods, make big purchases in EMIs, withdraw cash, and even avail an emergency personal loan with the help of this financial tool. Such a versatile tool should, therefore, be protected against loss, misuse or scam with a credit card insurance policy.

According to 2016 Global Consumer Fraud Report, India stood as one of the top 5 nations in credit card fraud cases. With increasing cases of financial fraud in recent year, the importance of credit card protection has become more prominent than ever.

What is a credit card protection plan?

A credit card protection plan functions as a customised insurance policy, providing complete financial protection against card fraud. It also covers against unauthorised use and replacement cost of other types of cards, including debit cards, PAN card, etc.

If you lose your credit card, the traditional option is to call the customer care for card blocking services. With the loss of multiple cards, this process can become significantly time-consuming. Hence, the easiest way to ensure card safety in advance is with a credit card insurance plan. Customers need to pay nominal annual premiums to avail this useful service.

How does a card protection plan work?

On discovering the card loss or theft, you need to lodge an FIR with the police station and inform the insurer. You will also have to submit some essential documents, including the police report, claim form, etc. to the insurance company. They will block all your cards to prevent identity theft, misuse or fraud.

Note that you can also purchase an identity theft cover providing up to Rs. 1.5 Lakh for premiums of only Rs. 299. It will provide additional financial protection against any malicious actions involving identity theft.

Opt for the best card protection plan

Losing your wallet with all your mode of payments and identifications can make you vulnerable to financial loss and unauthorised access. So, opt for a comprehensive policy which offers PAN, credit, and debit card insurance benefits.

Bajaj Finserv, a prominent NBFC in India, offers such easy-to-avail Pocket Insurance schemes like wallet care. These policies come with a host of features and benefits for the customers.

1. Hassle-free card blocking facility 24×7

Instead of calling various companies separately, make a single call to block all your payment as well as identity cards instantly. The facility is available 24×7.

2. Free PAN card replacement

If you lose or damage your PAN card, you can enjoy a free replacement under this PAN card insurance plan.

3. Mobile benefits

Along with payment cards, customers can also avail mobile blocking benefits under the wallet care scheme. It provides SIM blocking services along with IMEI and SIM registration facility.

4. Travel assistance during emergency

Often when travelling, you may get stranded at an unknown place without cash. The pocket insurance plan offers the following benefits in such situations –

• Emergency cash benefits up to Rs. 5,000 in Indian soil.

• Emergency credit up to Rs. 40,000 for hotel accommodation in India. The same for overseas is Rs. 80,000.

• Credit of replacement travel tickets (both within India and overseas).

Along with the above mentioned features, the insurance plan offers the following –

1. Coverage up to Rs. 1 Lakh for card fraud

2. Coverage up to Rs. 2 Lakh for fraud involving tele-phishing, phishing, PIN-based fraud, etc.

The validity of such plans is usually up to 30 days. The basic eligibility criteria to purchase the credit card insurance scheme are 18 or above years of age and Indian residence. Once you meet the parameters, apply via a simple online process to avail the benefits of this insurance policy. Fill up an online application form with your details in all mandatory fields and pay the premium with your preferred mode of payment. Receive confirmation and membership details within three days of application.

You can also add a fraudulent charge cover to financially protect yourself from unauthorised charges on your credit or debit card.

Credit card protection plan is the ideal insurance policy to protect yourself from financial loss after theft or loss of your valuables. Opt for the most appropriate credit card protection plan and ensure safety of your finances and identity.