Using credit cards? Subscribe to a card Protection Plan

Using credit cards? Subscribe to a card Protection Plan

However organized we are in our life, at one time or the other it happens that the things get somewhat messy around us. Similarly, we try to keep our wallet organized and protected all the times, but sometimes we miss our plan. Wallet lost is something that most of the people experience, at least once in their life. Sometimes back, wallet lost just accounted for the loss of some money and bills of some expenses, but nowadays wallet lost means loss of debit cards, credit cards, licenses, PAN cards and many other things. Our habit of keeping all of these together has increased the risk of losing it together.

So what would you do in case you lose your debit card? I think, the normal procedure followed by you will be to call each and every bank to block your missing card, and then you will apply to get the new one. This procedure is absolutely normal, except when, you are pressed for time or if you are prone to panic, because this process takes some time to work. In such circumstances, card protection plans comes to you as a savior. Yes, these plans are really awesome and useful for us.

Many a companies like CPP India, One Assist etc. offer some best card protection plans. If you do not want to go directly with them, the card issuing banks themselves offer card protection plans in association of these companies. You can avail any of these services at any time you want.

How a card protection plan works?

To use any card protection plan, what you need first, is to register yourself with the plan by paying the decided amount. After that, you will have to register the details of all your cards with the service provider company. The cards may include your PAN card, driving license, credit card, debit card etc. There is no limit for the number of cards that you can register.

Benefits of Card Protection Plans:

Nobody will subscribe to something until they see some benefits out of it. Here, I am enlisting some benefits of card protection plans, which makes it worth subscribing.

  1. The first and foremost benefit of card protection plan is that, in case, you lose any of registered cards, you can call the service provider to apprise them about the loss, and the service provider will in turn set about blocking of all those cards for you. Not only will they help you in blocking your lost cards, but they will also help you to get them replaced.
  2. In case of loss, some of these service providers replace your PAN card for free. Some companies even replace your driving license, free of charge.
  3. Although, there is some limit applied, but these providers give some sure protection against the fraudulent transactions made with your card. For e.g. CPP India 1399 plan, that is also called Classic plan, offers protection against fraud of up to Rs. 1 lakh. HDFC bank gives of a fraud cover of up to Rs. 2.5 lakh.
  4. These companies give you 24*7 protections against skimming, PIN frauds, ATM frauds and phishing, which are very common types of fraud these days.
  5. In most of the plans, the protection period begins at least a week before the report of card loss is filed. Some companies even offer a grace period of 30 days to their customers. It gives you a plenty of time to report and gives you protection as well.
  6. Most of these plans offer emergency services like emergency cash advance, ticket replacement service, settling of hotel bills etc., if there arise any need be. If you are travelling and you lose your card, you can use any of these emergency services and relax. However, the amount of money given, depends on the type of plan you have chosen, or whether you are in the country or abroad. For e.g. CPP India Premium Plan provides a cash assistance of up to Rs. 1.2 lakh, if you are overseas; and Rs. 20,000, if you are in the country.
  7. If you ever happen to lose your SIM card or phone, you can block it by calling these protection providers. Companies like OneAssist also help you to store your documents with them.
  8. You can even enroll your family member to avail the services of these protectors. For this, most of the companies provide Premium Card Protection services to their customer. By opting for that service, one can enroll for his/her spouse under the same scheme. If you wish to enroll more members, you can ask your service providers and they will assist you with this. For the family members, you will get a good off on your opted scheme.

When to enroll for such card protection services?

This service is of no use for you if you carry only a single card with you and no more. But if you happen to use many a card, issued by different banks; or if you carry a lot of cards and documents with you and travel frequently, this plan is a must for you. This plan saves you from calling bank after bank in case you lose your wallet. If you are pressed for time, these plans are a boon.

Most of these plans have a span of 1 year. You can opt for the option of automatic renewal, if you feel like renewing it after a year. These card protection service providers give you the maximum protection in case your cards are lost, but if your card gets misused by using the PIN or password authorization, it will not be covered under the card protection plan provided by these agencies.

About the Author

Pankaj Mathpal

Pankaj Mathpal, Founder and Managing Director, Optima Money Managers Pvt. Ltd. has over 22 years of work experience in Marketing, Financial Planning & Education. Read More…