Over one year, there has been a rise of around 27% in credit card users across India. According to statistical data, the number of credit card users was exceeding 48.9 million in May, 2019. Contrastingly, a year before, the number of users was around 38.6 million.
With the rise in use of plastic money, financial year 2018 also faced a loss of Rs. 109.75 Crore in frauds. This loss was borne by financial institutions as well as customers.
A financial product like card protection plan provides all sorts of cover on credit and debit cards along with numerous additional features. Essentially, these types of cover plans provide additional benefits which protect other contents in wallet.
Vitally, the basic features of such a plan spell out all its advantages which are listed underneath.
- Prompt card blocking service: Be it debit or credit card protection, the first necessary step in case of their loss is that of blocking them. Once blocked, no unauthorised user can use these cards to access and transact via their respective accounts. Only the best card protection plan in India can boast of this promptness.
Financial aggregators such as Bajaj Finserv provide Pocket Insurance & Subscriptions like Wallet Care, which helps you block all the cards with a single phone call.
- PAN card replacement application: Many individuals carry their PAN card along with cash and financial cards in their wallet for convenience. Under protection plan for cards and wallets, financial institutions provide free replacement of PAN card if it is lost or stolen. This helps customers since they do not need to go through the hassles of application.
- Travel assistance during emergencies: Loss of credit and debit card can be troublesome for individuals if it occurs during their travels. Individuals protected under a credit and debit card insurance policy avail assistance with accommodation as well as travelling costs if they lose while abroad or India. In case they lose their cards in India, they can receive the additional benefit of cash assistance too.
- Fraud protection: There are different types of frauds which can be done using credit and debit cards. Depending on the type of fraud, NBFCs pay out specific amounts to their customers as a cover for the fraud.
In cases of PIN based frauds, phishing, tele-phishing and if OTP is not required, NBFCs payout Rs. 2 Lakh to the insured. In any type of fraud than the ones mentioned, a sum of Rs. 1 Lakh is granted.
With chances of credit card loss, issues of identity theft arise too. This can be dealt even more effectively with Pocket Insurance & Subscriptions like Identity Theft Insurance policy from NBFCs such as Bajaj Finserv.
- Cell phone benefits: Loss of a cell phone can spell two major difficulties for their users along with numerous related problems. While the former is the obvious lack of communicating device which can hamper daily life, there remains the additional issue of fraud. Cell phones or their SIM cards can be used for malpractices, which can lead to the original owner suffering through legal harassment.
Under credit card protection plans, financial aggregators provide the service of blocking the SIM card. Additionally, under this cover plan SIM and IMEI number is provided too.
Along with a protection plan for loss of plastic money, it is also advisable to buy an ATM assault insurance cover. Such an insurance policy protects the insured anywhere in the world in case their account is hacked within 15 minutes of their transaction, ensuring that they do not suffer any financial loss. Along with a wallet care plan, the ATM cover spells out total safety of credit and debit accounts.