While on one hand, use of payment cards have facilitated easy transactions on the go and pushed India towards becoming a cashless economy, the rising instances of debit and credit card frauds, on the other hand, have continued to worry the government and citizens, alike.
According to the data shared by the Reserve Bank of India (RBI), a total of 911 cases of debit/credit card frauds were reported in the financial year 2017-18. This mainly happened after the miscreants gained access to private details of cardholders using ungainful means. The total amount of money that went into the wrong hands was Rs. 65.26 crore.
Therefore, it becomes very crucial to adopt some additional security measures in order to safeguard your finances from such sharp practices. One such step is to opt for a wallet care plan. Also known as card protection plan, this insurance policy is designed to protect your debit and credit cards from getting lost, damaged, and related frauds.
What is a card protection plan (CPP)?
As mentioned above, CPP is a special type of insurance policy that is curated to protect your plastic money from theft, fraud, and other associated risks. Besides, you can also purchase this policy to safeguard other crucial documents stored in your wallet such as PAN card lost, Aadhar card etc.
While most leading insurers in India have on offer card protection plans that can prevent the financial losses related to debit or credit card frauds, some bundle this benefit into a more comprehensive wallet protection plan. Generally, these policies are valid for a period of one year and can be renewed after that.
Key benefits of card protection plan
Single call assistance – Inarguably, the biggest advantage of a CPP is that in case of a mishap, you would not have to call multiple service providers to block your debit and credit cards. Instead, you will have to make a single call to the insurer to inform them about the incident of loss or theft, and then it’s upon them to ensure that all your cards are blocked immediately.
Emergency advance cash facility – In case you lose your wallet during a trip to an unfamiliar territory, your wallet care plan will help you avail emergency advance cash. You can use this money to settle hotel or restaurant bills, pay for your travel tickets, and meet other necessary financial obligations.
Hotel and travel assistance – Sometimes, you might lose your wallet (and with it, all the plastic money and important documents that you had) during a trip to an unknown place. During such a situation, you can fall back on your wallet protection plan to get the replacement of your travel tickets and emergency advance for hotel accommodation (if required).
Protection against loss of mobile – The coverage of this plan isn’t confined to the loss of your wallet only. Should you opt for a CPP, you’d be able to block your SIM card(s) instantly, in case your mobile phone gets lost or stolen, by informing the insurer about the incident. More importantly, you’d be able to retain your IMEI number that can help you to trace your lost mobile phone.
How to avail a card protection plan?
Availing a card protection plan is easy. All you need to do is to look out for the financial institutions offering such a policy. Compare quotes online, see the inclusions and exclusions, fill up the proposal form, pay the premium and you are done. As mentioned before, such plans are annual contracts which are required to be renewed every year.
For instance, with wallet care plan from Bajaj Finserv – an offering under their pocket insurance and subscriptions category – you can get complimentary fraud protection coverage of up to Rs. 2 lakh against phishing, tele-phishing, loss of card, and other related frauds. It also offers 24×7 card blocking service, wherein you can block your card(s) by simply dialling toll-free number 1800-419-4000.
With this policy, you will also get emergency travel assistance, in India and abroad, should you lose your wallet and are in need for cash. Not only this, the insurer also offers SIM blocking services, in case you lose your mobile phone. You can avail this convenient plan by paying a nominal one-time premium of of Rs. 599 only.