Giving access to instant cash, credit cards have become an integral part of our lives. Their popularity has soared over the years, as evident from data released by the National Payments Corporation of India (NPCI). As per NPCI, the number of outstanding credit cards went up by 22.87% at 4.42 crore in December 2018 as against 3.54 crore during the same period in 2017.
However, in the past few years, there has been a sharp spike in the number of credit card frauds. As per Experian India Fraud Report 2018-19, frauds related to credit cards occupied pole position at 1.4% on a monthly basis among product-wise monthly fraud rates.
While there are many ways to prevent credit card frauds, a credit card protection plan can help you secure your card and minimise the losses suffered in the event of a fraud. Read on to know the various aspects of such a plan.
What is a credit card protection plan?
A credit card protection plan, also known as credit card insurance, gives you the financial cushion if you fall victim to a credit card fraud. It helps you initiate the necessary action on the go to prevent misuse of the card and also provides coverage up to a certain amount in case your card is used for unauthorised transactions.
Card blocking is the first step to take in the event of a fraud. However, it involves a series of processes, right from calling the customer care executives to providing all the necessary card details. This can eat up a significant amount of time.
Also, it’s not often that people have ready access to essential information pertaining to their card. A card fraud leads to panic and it becomes difficult to gather all relevant data at one place within a short span of time. This can delay in blocking, subsequently maximising the losses.
However, this is not the case with a credit card protection plan. When you opt for such a plan, the issuer has all the relevant details about your card beforehand. All you need to do is to dial up the toll-free helpline number, present your case and your card is blocked. Additionally, if you lose your wallet containing multiple cards, you can block every card with a single call.
Other benefits of such a plan
There are several other benefits of availing a credit card insurance plan. Generally, such a plan not only covers you for loss or misuse of your card in India but also abroad. Additionally, in case you are left stranded for cash, you can also get cash advance.
This comes in handy when you are out on a trip with your family domestically or abroad. The cash received can help pay hotel bills and book tickets, among others. Thus, with the help of a single plan you can not only secure your card from being misused, but also get financial assistance amid crisis.
How to avail a credit card protection plan?
Availing a credit card protection plan is easy. All you need to do is to look out for financial institutions with such an offering. Compare quotes, see the inclusions and exclusions on offer, fill up the proposal form, pay the premium and you are done. Note that such plans are annual contracts, which mean you need to renew them every year.
For instance, wallet care from Bajaj Finserv offers complimentary fraud protection with coverage up to Rs. 2 lakh for frauds involving phishing, tele-phishing etc. It also offers 24×7 card blocking service, wherein you can block your card(s) from anywhere by dialling toll-free helpline number 1800-419-4000.
With this plan, you will also get emergency travel assistance, in India and abroad, should you lose your card and are in need for cash. Not only this, Wallet Care also offers SIM blocking services, in case you lose your mobile phone. This convenient plan can be availed by paying a nominal amount of Rs. 599.