All You Need to Know about Card Protection Plans

In the digital era, where most transactions are attempted online, Credit Cards play a significant role today. Whether it is for all-time fun access or an online payment, all can be managed with a single card. Nowadays, it is easier than ever to access the Best Credit Cards in India.

However, the highly safe and secure interface of Credit Cards is primarily behind the confidence and freedom of using these cards. But, sometimes, without fault, one may also lose this precious plastic card from the wallet. But instead of getting panicked and cluttered, it is essential to handle the situation smartly. The first thing that would click on your mind would be to call customer care to block the card for further use.

But what if the Credit card has already been used by someone, or there is a possibility that you may hold more than one credit card, that lands your whole day spent dealing with different customer care numbers.

Herein, a Credit Protection Plan can act as an advanced safety step for you.

Credit Card Protection Plan

Credit Card Protection Plan works like an insurance plan for Credit Cards, Debit Cards, Retail Cards, Loyalty Cards, and Membership Cards. The customer can benefit in case of theft, loss or fraud of the card. However, the cardholder needs to pay yearly fees for access to this add-on service. In India, two chief service providers offer Credit Card Protection Plans:

• Credit Protection Plan
• One Assist.

The banks usually offer three types of plans; you can choose as per your choice – Classic, Platinum and Premium.

The role of the service provider is to connect with the concerned bank for cancellation of a card on your behalf. If, due to any reason, your card is lost or stolen, you need to merely dial the helpline number of the service provider to make the complaint. The provider is liable to pay expenses incurred on the lost card against any unauthorised transaction attempt.

The benefit is also extended to customers travelling abroad. CPP offers you emergency financial assistance for travelling and pays the hotel bills when you lose your wallet.

Going a step ahead, banks today have broadened their helping hands for providing service to safeguard the details and other crucial documents, including PAN Card, Aadhaar Card, and other documents, besides your Credit and Debit Cards.

Let’s have a look at the pricing and advantages of Protection Plans and review these for customers.

As a customer, you have a choice to choose a plan as per your convenience. The plans start from as low as Rs.899 per year. The CPP plans fall under Classic Single category, the annual cost of a single person under this plan is Rs.1399, the second plan is Premium Joint that is for two people, and third one is Platinum Family that covers the cards of an entire family which costs about Rs. 2185.

Advantages

• One call to block all lost Cards
• Emergency cash advance
• Emergency travel and hotel assistance
• Free replacement of lost PAN Card
• Bank protection with F-Secure Internet Security
• Complimentary Fraud Protection
• Emergency Roadside Assistance
• Complimentary Card Fraud
• Mobile wallet protection.

Factors to keep in consideration before buying CPP

Tie-up provider – Although all banks have tie-ups with all service providers, it is still imperative to check the comprehensive listing your bank has synchronized to deal with.

Get details about CPP plans – Know the detailed terms and conditions about CPP plans.

Maximum Damage loss – The maximum cap reimbursement can vary from plan to plan. Get detailed information about the programs and understand the maximum damage loss that would be covered against the plan you choose. It includes Fraud Protection, Mobile Wallet protection, and others.

Questions to ask before buying a CPP plan

How many cards do you have, and what are the max credit limits of the cards? If you have only 1-2 cards with a lower credit limit, you would not need this plan. But a user with multiple cards and high credit limits certainly needs a CPP.

How frequently do you travel? If you are travelling abroad or a frequent traveller, there are chances of loss or theft, and you might need CPP.

Procedure to Apply

It is easy to subscribe to CPP.

You can fill an application form for the particular protection plan. These applications are available online on the service providers' or banks’ registered websites.

There would be an option to pay a premium as per your plan and service provider. The dividend is paid in advance at the beginning of the plan.

Once you have successfully paid and completed the process within a week, your service provider would send you a welcome pack. It includes a registration form and confirmation letter along with terms and conditions of the plan you opted for.

It is essential for a cardholder to register each card under the protection plan. For example, if you are holding an SBI Credit Card along with other cards, say an ICICI Card, register by giving all details of the cards to the CPP provider.

Overall verdict

An option of CPP gives you an opportunity for protection against lost or stolen cards. If you have more than two Credit Cards with high credit limits, then this option is worth the effort. You must assess the risk factors involved and the advantages you can reap. If you are an avid traveller, there is a chance that you may lose or misplace your card, and that could lead to a higher risk of fraud. For those individuals, CPP plans are worth it, while for those individuals who rarely travel, they may skip for now.