What is Credit Card Insurance?
Cardholders are shielded by credit card insurance from a number of hazards related to using credit cards. Air accidents, hospitalization from accidents, incidents involving travel, lost card responsibility, purchase protection, credit shield for unpaid debts in the event of disability or death, use of counterfeit cards, etc. are all covered. While enhancing the whole credit card experience, the insurance serves as a safety net, guarantees financial stability in unanticipated situations, and lowers potential loss.
How Does a Credit Card Insurance Plan Work?
The credit card-based insurance benefits function similarly to those of any other type of insurance. The cardholder can claim the fixed coverage that comes with the embedded insurance policies if they experience any of the unfavorable events covered by the plan.
Features and Benefits of Credit Card Insurance Coverage
Credit card insurance offers cardholders financial support and coverage for unanticipated circumstances. What is covered by credit card insurance is as follows:
1. Travel Insurance
A credit card's travel insurance removes the need for cardholders to get extra travel insurance. It provides coverage for air accidents and damages brought on by
a. Delay in baggage
b. Loss of baggage
c. Aircraft hijacking
d. loss of travel documents, including a passport
2. Accident Hospitalization Benefit
You will profit from this insurance if you are hospitalized as a result of accidents on the roads or railroads. Up to the predetermined insured amount, it pays back the expenses related to hospital stays, therapies, and medical services.
3. Credit Shield
The Credit Shield clause makes sure that any unpaid balance on the credit card is paid off in the event of the cardholder's untimely death. This lessens the financial strain on the deceased's beneficiaries or family.
4. Purchase Protection
Credit Card Purchase Protection shields the items bought with the credit card from fire or theft damage for a predetermined amount of time. The cardholder may submit a claim if the product is harmed for any of the reasons specified in the plan
5. Lost Card Liability
If a card is lost or stolen, this function gives cardholders security. It protects them from monetary losses resulting from unauthorized transactions made with the stolen or lost card. The cardholder's financial security is guaranteed when fraudulent charges are covered.
6. Counterfeit Card Liability
The use of counterfeit cards, this protects cardholders from unauthorized transactions by third parties. It provides security against such transactions and pays the monetary damages brought on by fraudulent activity.
7. Accident Insurance
This insurance covers accident-related mortality or injury, with different coverage amounts depending on the type of card. For instance, coverage for aviation accidents may reach ₹40,000,000, while coverage for road accidents may range from ₹2,00,000 to ₹4,00,000.
How to Claim Insurance For Your Credit Card
Knowing the terms and limitations of your credit card insurance is crucial. You can handle your claims more easily and smoothly if you are aware of your credit card insurance. The majority of consumers pay large credit card bills without realizing that their credit card insurance might have paid for them. You must understand the claim procedure in addition to learning about the features of your credit card insurance
Credit Card Insurance Claim Process
The procedure for filing a credit card insurance claim varies depending on the kind of insurance you have. Credit card insurance comes in a variety of forms, including travel insurance, air accident coverage, credit shield, and zero lost card liability. Every kind of insurance has a different claims procedure. While filing a First Information Report (FIR) is required for certain insurance claims, it is not required for other insurance types.
Most of the time, you will need to get in touch with the customer service department of your insurance company, inform them of your claim, and send a written request together with all supporting documentation to the address the customer service representative gave you. Additionally, some insurance providers let you submit an online.
Top banks offering credit card insurance
1. HDFC Bank:
Luxurious and comprehensive insurance advantages, such as coverage for accidental death in the air and emergency medical costs while traveling overseas, are provided with the HDFC Bank Regalia Credit Card.
2. Standard Chartered Bank:
For overseas travelers, the Standard Chartered Visa Infinite Credit Card offers comprehensive travel and medical insurance up to USD 200,000 in addition to special benefits for priority banking.
3.IndusInd Bank:
Special perks offered by the IndusInd Bank Aura Credit Card include ₹10,000 for misplaced luggage, ₹50,000 for lost passports, and ₹25,000 for other travel-related annoyances.
4. Axis Bank
One of India's biggest banks in the private sector is Axis Bank. Features like credit shields, purchase protection, air accident coverage, and zero lost card liability are all included in this bank's extensive credit card insurance. Each feature has a distinct claim procedure.
a. When it is time to file a claim, the insured should notify Axis Bank customer service right away.
b. If the insured is making a claim for purchase protection and 0% lost card liability, they should report the lost card to the police by filing an FIR.
c. Download the insurance claim and dispute forms from the official Axis Bank website. These forms are solely necessary for purchase protection and zero lost card responsibility.
d. Complete the forms and send them, along with any supporting documentation, to the address listed on the form.
e. The nominee must present the principal cardholder's death certificate to make a claim for credit shield and air accident coverage.
Tips While Claiming Credit Card Insurance
The procedure of filing a credit card insurance claim can take a long time. Nonetheless, there are a few steps you may take to ensure a smooth claim procedure. Here are a few actions you can take:
Examine your credit card insurance policy's terms and limitations. This will assist you in determining the kinds of claims that can be made.
a. When you travel, keep a copy of your credit card insurance with you. In this manner, you will always have your credit card insurance provider's contact details at your fingertips.
b. On time, pay your insurance premiums. Even though you could believe that skipping a payment is acceptable, it is always advised to maintain insurance coverage against fraudulent activity.
c. The written claim form and any supporting documentation should always be sent on time to the address provided by your insurance company.
The bottom line
Numerous insurance benefits that give financial stability in unexpected situations are provided by credit cards. These insurance alternatives, which range from comprehensive travel insurance and liability coverage to purchase protection and extended warranties, can greatly improve your financial planning.
To completely comprehend the particular advantages, restrictions, and eligibility requirements of each insurance policy, it is imperative to carefully go over the terms and conditions. Cardholders can feel more at ease knowing they are safeguarded against life's unforeseen events by utilizing these insurance solutions.