How to Save your Money Through a Credit Card Protection Plan?

According to the latest government report, India recorded losses worth Rs.228 crore due to fraudulent usage of debit cards, credit cards, and net banking in the Financial Year 2020. That’s nearly a 53% increase from the figures of last financial year. As India progressively shifts towards cashless transactions, the threat of card misuse is also on the rise, as evidenced by these statistics.

So, while cardholders enjoy significant benefits, they also carry enormous financial risk due to technological advancements and new methods that fraudsters employ. To that end, you might consider a card protection plan to receive coverage and save yourself the financial strain if such an eventuality comes to pass. 

What is a credit card protection plan?

Also known as wallet protection plan, it provides financial protection as well as a suite of other services to its policyholders on account of loss or theft of cards, and even fraudulent usage of those.

Alongside credit and debit cards, your wallet might also contain essential items like PAN card. A wallet insurance policy also provides coverage of those instances to minimise the consequences of losing a wallet.

Benefits of a card protection plan

Here’s how you can save your money through a card insurance policy –

Instant card blocking services

In case your cards fall in the wrong hands when you lose your wallet, it might put your finances in jeopardy. It can lead to unauthorised transactions and cash withdrawal, which can deplete your balance significantly. Therefore, the first step is to block your cards.

However, if it’s a question of several cards, blocking all of them individually might be a timely affair and time is of the essence in such cases.

Bajaj Finserv offers Pocket Insurance & Subscriptions like the Wallet Care policy. You can report the loss of multiple cards via a single phone call, and these will be blocked instantly to prevent financial loss on account of aforesaid events.

Fraud protection services

You can also avail financial coverage of up to a specified amount against your credit card insurance policy if there’s a fraud using your cards. It is another critical feature of this insurance plan that protects your finances from card frauds.

It provides protection against card frauds, which include skimming, phishing, tele-phishing, PIN-based fraud, card present and not present transactions, etc.

You can also choose to bolster such financial protection by purchasing policies like fraudulent charges insurance cover.

Read Also: https://en.wikipedia.org/wiki/Payment_protection_insurance

Travel assistance

With an insurance wallet policy, you can also avail travel assistance if you lose your wallet and cards. You will receive ticket replacements, as well as financial coverage for hotel expenses to mitigate the inconvenience while travelling. Alongside that, if you are travelling within India, you can also avail emergency cash advance so that you can extricate yourself from that situation and even sans your wallet.

PAN card replacement

In case you lose your PAN card as collateral to wallet loss, you will avail compensation against the expenses paid to get a replacement with your credit card protection insurance policy.

Apart from that, you should also note that even though the loss of a PAN card does not have any immediate financial consequence, it can lead to identity theft in the wrong hands. Thence, you may consider an Bajaj identity assure policy for financial coverage against the legal fees that you might need to incur to resolve that issue.

A card protection plan is a quintessential financial service in the contemporary world, where both usages of cards and technology are advancing at a rapid pace. And its significance especially holds if you are often in circumstances where wallet loss is a possible event, like travelling in busy commutes.