What do you need to know about card protection plans in India?

Card Protection Plans in India
Card Protection Plans in India

According to reports published by the Reserve Bank of India, the number of outstanding credit cards rose by approximately 1 lakh between May and June 2020. Also, the total number of debit cards increased by 10 million during that period. This significant rise in card issuance comes as a direct result of rapid digitization sweeping the Indian financial market.

The role of government initiatives and financial institutions, in that regard, has been promising. It has encouraged several individuals to opt for debit and credit cards. 

  • As of June 2020, the number of credit cards in India reached 57.2 million, and the tally of debit cards stood at 845.4 million.
  • India shall form 2.2% of the global digital payments market by 2023.

However, card frauds have also precipitated at an alarming rate in the past few years. The digital phenomenon has made individuals’ finances more vulnerable to unscrupulous activities. Resultantly, mechanisms like the best card protection plans have become imperative for cardholders. It allows individuals to deal with fraudulent practices more efficiently and ensures minimal financial loss. 

What is a card protection policy?

It is a form of insurance coverage that financial institutions provide to insure the contents of a policyholder’s wallet. Unlike a decade or two ago, individuals today carry a host of items in their wallets alongside cash. It includes credit cards, debit cards, KYC documents like PAN, loyalty program cards, etc. Conceivably, loss or theft of a wallet can lead to considerable challenges for the victim.

  • In 2019, India witnessed nearly 52,000 cases of frauds related to credit cards, debit cards, and net banking. 

With a card protection insurance policy in place, individuals can rest easy in that regard. It not only alleviates any financial burden but also provides assistance for circumstantial inconveniences arising out of such an event. Thus, several experts recommend availing such a policy. Even financial institutions suggest individuals keep in place a protection plan for their cards to ensure minimum hassles later.

For additional financial protection, individuals can also avail the fraudulent charges cover. It allows policyholders to claim reimbursement against unauthorised transactions made via their cards.

What are the features of a card protection plans?

With this insurance plan, policyholders can access the following features – 

  1. Multiple card blocking facility

The first thing to do following the loss or theft of a wallet or purse is to block the debit and credit cards so lost to prevent misuse. However, with multiple cards, it is not only tedious but also a substantially time-consuming task. You would need to contact each card issuer to block all your cards. Given the severity of such a situation, delays can lead to considerable financial losses.

With Wallet Care insurance policy provided under Pocket Insurance & Subscriptions from Bajaj Finserv, you can block all your cards with one single call. Moreover, the service is available round the clock. Thus, you can deal with theft or loss of wallet with relative ease. 

  1. Fraud protection

Another critical advantage of a credit card protection insurance policy is that it provides coverage against losses an individual incurs owing to unwarranted transactions. Card frauds, including phishing, skimming, etc. have become widely prevalent in India over the past few years.

  • From 2009 to 2019, India recorded a loss of Rs.615 crore due to debit and credit card frauds.

With such a plan in place, individuals can receive reimbursement against all types of card frauds. It includes both card-present and not present transactions. Thus, it covers any financial burden arising out of loss or theft of wallet and misuse of cards.

  1. Travel assistance

Inconveniences abound when you lose your wallet or purse during traveling. With no cash in hand and essential documents and cards lost, you are left in a financial fix. In that case, a wallet protection plan can save the day.

You can avail emergency advances for hotel stays and replacement of lost flight tickets under this coverage option. Moreover, such a policy also provides emergency cash benefits to ensure you can relieve yourself from such a situation with minimum hassle. 

  1. Free replacement of PAN card

You can also avail of a free PAN card replacement with a card protection plan if you lose it or if it is stolen. However, a loss of PAN card has severer implications, including identity theft, which can lead to enormous financial losses in the form of lawsuits. Negating such unwarranted offences can lead to exorbitant legal fees.

You can also mitigate such expenses with an insurance plan like an identity assure policy. It covers all costs arising out of such legal hassles, ensuring they don’t burn a hole in your pocket. 

Apart from that, you can also block your SIM card with a card protection policy if you happen to lose your cell phone. To apply for it, you can follow a few simple steps – 

  • Visit the financial institution’s website and search for the ‘Card Protection Plan’.
  • Click on ‘Apply Now’ and fill out the application form with accurate details.
  • Pay the premium via the available modes of payment.

You can avail of a considerable sum insured with a card protection plans. Nevertheless, ensure to research adequately on the coverage plan to maximize your benefits from such an insurance policy.