Even before the digital wave took over, debit and credit cards have been playing an integral part in removing hassles that are associated with payments through cash. Starting with debit and credit cards, PAN cards, loyalty/membership cards, etc. are all part of one’s wallet nowadays. Losing or misplacing these cards means there is a high risk of them being misused. To help during these times the cardholder needs to block each and every card immediately and then apply for new ones.
Along with that, credit and debit card fraud is at an all-time high, therefore it is important to protect this plastic money from theft and fraud. Opting for a Card Protection Plan (CPP) offered by various banks is one of the ways to ensure the safety of your debit and credit card.
A card protection plan offers insurance cover against any loss, theft, or fraud that has occurred to the cardholder in such a situation. With a CPP the cardholder gets one point contact to block all the cards that have been lost or misplaced. It also provides assistance to apply for new ones.
This plan is offered by various providers like card protection plan companies, banks, and credit card companies including, SBI, ICICI Bank, Axis Bank, IndusInd Bank, Kotak Mahindra Bank. Most of the banks and credit card companies offering CPP offer different protection to the cardholder and the cost of the plans usually ranges from Rs 1,600 to Rs 2,500 for a year.
Ket features that are covered usually include instant blocking of lost card/cards with just one phone call, fraud protection, free replacement in the event of loss of PAN card, IMEI registration and SIM blocking service, emergency cash facility is provided, registration of valuable documents, registration service for mobile phone identifier, etc. However, note that these services vary from bank to bank. Most of these plans also offer emergency financial assistance during travel such as settling travel and hotel bills.
Keep in mind that the card protection plan takes effect from the date you make the payment to one year. To avoid loss of cover, you can also opt for an auto-renewal option at the end of the term. Experts suggest, compare different card protection plans to get the best benefits offered as well as the right pricing.