Why Should you have a Card Protection Plan?

In today’s age, day-to-day dealings and other financial affairs are unimaginable without credit and debit cards. Be it minimal transactions or lump sum ones, plastic money is fast-becoming the more sought-after mode of financial transactions instead of liquid cash. As per RBI reports, the total number of debit cards in operation throughout India rose to 840.6 million in July 2019, owing to 3.7 million new cardholders over the month of June 2019. In the case of credit cards, the total count stood at 50.3 million. About 10.1 million new credit cards have been issued during the period of July 2018 to July 2019.

Loss or misplacement of credit/debit cards does not only mean financial hindrance. It could also lead to huge financial losses in case of fraudulent activities. Card protection plans are known to be an efficient way to deal with such mishaps. Through such insurance plans, the insurer provides compensation against financial losses occurring out of card fraud.

A card protection plan can also help with the replacement procedure as well. Note that such insurance plans are provided by the card issuer via liaison third parties during the issuance of the card.

Individuals mostly keep all their credit and debit cards in their wallet. As a matter of fact, lost, misplaced or stolen wallets are one of the most common reasons behind misplaced cards and fraudulent activities with them. In this context, insurance policies such as a wallet care plan can provide the necessary financial coverage including financial protection against loss of card.

Reasons why you must have a card protection plan?

An individual might land up in huge troubles if his baggage, wallet, credit/debit cards, and important documents get lost or stolen. Insurance aggregators like Bajaj Finserv provide the Wallet Care insurance plan under their Pocket Insurance & Subscriptions inclusive of card protection plan and various other terms of coverage to benefit the user in case of loss of the card/s.

With these insurance plans, you can keep yourself prepared against potential financial risks in the future. Here are some reasons which make debit card and credit card insurance plans a must-have for every card-owner –

• The substantial sum assured by insurers

This is one of the primary points you must consider before finalising the ideal card protection plan for yourself. You can avail compensation as high as Rs.2 lakh by paying minimal premium charges of Rs.599 per annum.

• Convenient card blocking facility

With insurance policies such as the purse care plan, you can have all your lost/misplaced cards blocked by just one call in case your purse is lost or stolen along with them. This prevents a cardholder from having to visit each and every bank individually to have the cards blocked.

• Emergency travel assistance

It might be so that you end up losing the cards while on a trip. You may be stranded at an unknown place, lacking financial means to travel further or book a return. With a comprehensive card protection plan, you can get emergency travel assistance in the form of flight tickets, hotel stays, emergency cash, and more.

You can also consider purchasing an ATM assault and robbery insurance policy for financial protection against assault or robbery from within ATM premises.

Additional Read: Checklist Before Opting For Card Protection Plans

Credit cards and debit cards are commonly used and misplaced. With the increased digitisation of today, such cards are alarmingly susceptible to unauthorised transactions on them if lost, misplaced or stolen.

This makes the possession of credit or debit card insurance plans a must-have for every individual. The add-on benefits and features included under these policies further increase the boons.