What is credit card protection & how to use it?

online frauds

Credit cards have played a vital role in today’s times. When you misplace your valuable credit card, your world crashes down. However, there are numerous ways to handle this situation. Likewise, you have to call customer care pleading to block your credit card at the first instance immediately. On the other hand, if you hold more than one credit card, the calls would be never-ending. Therefore, obtaining a credit card protection plan is one of the best options to preserve your card safely.

Credit Card Protection Plan

A credit card protection plan is an insurance plan for debit, credit, retail and membership cards in case of theft, damage, or online frauds on the cards. Under this plan, the cardholder is required to pay a fixed fee every year to utilize the service. Bajaj Finserv, a leading financial service provider, under its Pocket Insurance Plan & Subscriptions, offers manifold card protection plans for diverse cards centered on information, such as credit parameters, etc.

Features

  • Cost-effective and annual premium: The card protection plan (CPP) service providers direct the cardholders to pay a minimum amount yearly to obtain a subscription for the service.
  • Single insurance plan: Credit card protection services are single insurance plans. Hence, it provides coverage to cardholders who hold more than one card, such as credit, debit or a PAN card, or even a driver’s license.
  • Hassle-free blocking: You need to register the details of your card to obtain a subscription to the plan. Once the registration process is over, you need to call your service provider in case of theft or misplacement of the card. By doing so, all your cards linked to the plan will be blocked immediately.
  • Rapid card cancellation: The service provider of CPP coordinates with the concerned banks of your credit and debit cards to initiate a cancelation of your lost cards.
  • Support for card replacement: The card protection plan also assists in replacing the misplaced cards. Beware of online frauds, which are on the rise these days.
  • Emergency financial aid: CPP services provide emergency cash advance to settle unpaid hotel bills or arrange travel tickets if you have misplaced your credit, debit, or any other card abroad. Besides, it takes at least 48 hours to offer help if you are on tour in a foreign country. No interest is levied on the emergency cash advance and the cardholder is required to refund the total amount within 28 days.
  • Free PAN card replacement: Under the CPP, you are entitled to a fraud protection feature. Simultaneously, your PAN card is also safeguarded against any loss, theft, online frauds, etc. In this case, if your PAN card is lost, then the CPP service provider gets it replaced in a short period free of charge.

How to apply?

  • Download an application form from the website of a service provider or registered bank and fill it to select a card protection plan.
  • Pay the premium as provided by the service provider and according to your card. By and large, the cardholder is required to pay the entire premium as soon as the plan gets active.
  • A welcome kit is sent to the cardholder, which contains a registration form, confirmation letter, membership terms and conditions.
  • The cardholder should provide details of each card to the CPP provider.

Subscription

Mentioned below are some of the points that you should look at while applying for credit card protection:

  • Be well aware of the banks tied up with providers when choosing the card protection plan.
  • Get a fair idea of all plans, as each CPP varies depending on the bank and the card.
  • Identify the maximum compensation on your plan.

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