· A Credit Card Insurance Plan offers financial protection to the cardholder in case of an unforeseen event where the cardholder is unable to repay the credit card bills due to loss of income, disability, injury, or death.
· It also extends its coverage to credit card frauds for both online and offline types of transactions. It may cover frauds like PIN-based transactions, phishing, contactless transaction, tele-phishing, etc.
· Many plans offer a single-call card block service in case of a credit card theft or loss.
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· Some Credit Card Insurance Plans offer emergency travel assistance (emergency cash in India, emergency advance to hotels, replacement of travel ticket, etc.), subscription to software for internet security, mobile wallet protection, etc.
· The plan may also offer a free annual credit report analysis service.
· Different banks have different names for this insurance; Card Protection Plan, Credit Shield, Card Safeguard, Balance Protection Insurance, and many more.
· The credit card issuer charges a monthly or yearly fee for the Credit Card Insurance Cover, which differs from issuer to issuer.
· It can help you repay your credit card dues on time and maintain a good credit score in case of an unforeseen event.
Here are some of the common insurance coverages offered by Credit Card Insurance Plans. However, these benefits may vary from insurer to insurer. Hence, before purchasing the plan, it is advisable to check the features, benefits, terms & conditions, etc., to avoid future disappointment.
1. Accidental Death:
Accidents can happen anytime and result in anything from a little damage to your car to an unfortunate demise. A Credit Card Insurance Plan can pay up to Rs 50,000 outstanding credit card balance in the case of the accidental demise of the cardholder. However, this amount may vary with each company. The family member that files the claim has to submit the death certificate, FIR, post-mortem report, medical examination report, etc. within 60 days from the time of mortality. Notice of death should be given to the credit card insurance provider within 30 days from the time of mortality, along with a detailed description of the accident.
2. Rental Car Insurance:
An accident of a rental car hired without any insurance can cost a pretty penny. But, if you have rented the car by paying through your insured credit card, you can claim for the repair of the damages that occurred to the car with the credit card insurance provider instead of paying from your pocket. However, this insurance will not pay any amount for third-party damage/loss or injury, theft, etc.
