Sun. Jun 26th, 2022
card protection plan

In today’s economy, when the government is promoting and encouraging digital transactions, card payments have become the norm. They not only bring down the trouble of having to carry cash with you at all times, it can also act as a lifesaver when you are faced with unforeseen financial needs or other similar emergencies. A card protection plan is a complete solution that protects one’s credit or debit cards, as well as government IDs such as Driver’s License, Aadhaar or PAN card.

So you may have multiple bank cards, such as one or more debit cards as well as credit cards. If you are like most people, you probably carry all of these cards together in one wallet. And that same wallet will often hold the various government identification cards too, such as an electoral card, driver’s license, PAN card, Aadhaar card etc. Have you imagined what would happen if you lost that wallet? You would have to call each bank individually to inform them of the card loss and have them blocked one by one.

Similarly, you would have to apply for each of the government-issued IDs separately too. By carrying all your bank cards and identification cards in one wallet, you are exposing yourself to the risk of not being able to access all of your emergency funds precisely when you need it (for example, when said wallet goes missing!). This is where a card protection plan can come into play.  

Card Protection Plan Explained

All major retail banking players in the country, including SBI, ICICI Bank, Yes Bank, Kotak Mahindra Bank and others, as well as reputed non-banking financiers such as Bajaj Finserv, now provide Card Protection Plans. In the event of theft, fraud, loss or other emergency.

Depending on the service provider, the card protection plan that you choose and the number of members you wish to include in the plan will determine the actual benefits as well as the annual fee for such coverage. 

This kind of a plan works similar to an insurance cover: 

  • It must be renewed year-on-year to ensure that it is active
  • If theft / loss / fraud is proved as due to negligence on your part, the claim could be rejected 

Features of a card protection plan

All card protection plans may not have the exact same features, but broadly these are some details that will be common to all. 

1) Block all with one call:

You will count your blessings for this feature. It allows you to call just one phone number and the provider at the other end will take care of getting your lost cards blocked. It saves you the trouble of calling up multiple card-issuers, staying on hold, facing call drops and then repeating yourself until the needful is done. There are some plans that offer mobile phone protection and can even assist to block your SIM card.

2) Emergency financial aid during travel:

If the mere thought of losing your wallet during a holiday leaves you paralysed, a card protection plan might be perfect for you. With this plan, you will get financial aid to pay off any balance payments towards flight tickets or hotel accommodation. But since the kind of coverage differs from provider to provider, it is advised to read and enquire about the exact terms and limits so that you are not surprised in an eventuality. This feature is usually limited to travel within India.

3) Assistance to replace cards:

While loss/theft of bank cards requires you to make phone calls to each bank, replacing identification cards often requires a lot of documentation. A card protection plan will assist you in all this documentation and other menial procedures to replace your identification cards, including passport. This could be particularly useful if you lose your passport during travel and need help getting back home.

4) Document registration:

This great feature lets you safely save data about your credit or debit cards, insurance policies, government-issued ID cards and mobile device IMEI. If you lose any of this, one phone call to the provider will help you track your phone or get access to all the information you need to block the cards.

5) Fraud protection:

From the time of loss/theft of your wallet to the cards being blocked, misuse could occur. Interestingly, a card protection cover typically starts 15 days before a loss is actually reported. Check the terms and extent of coverage with the service provider. 

If you are the kind of person who carries keys in your wallet, there are other similar plans that allow you to protect the keys of your house or car. In case of loss/theft, stolen car keys insurance claim can be made, and key replacement or locksmith services can be availed.

If you are someone who regularly uses cards for payments, and travels frequently, a card protection plan may be great for you. Make sure you learn about the exact terms of coverage before committing to anything so that the plan is according to your requirements. You may need to compare one or two plans to know that you are getting the best. 


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