Credit cards have always played a significant role in our lives, be it either for an all-time fund access or just a thing to boast about. Till the time it is safely packed in our wallet, it gives us a sense of purchasing power and confidence. The dreaded moment when you lose your precious credit card, your world comes crashing down. There are many ways to handle this situation if you are not already in the middle of a panic attack. The traditional way of handling this incident would be to call the customer care requesting to block your credit card. However, if you are one of those who take pride in more than one credit card, then the calls could seem endless. Therefore, Credit Protection Plan (CPP) is one of the best options to keep your card safe in advance.
Credit Card Protection Plan acts as an insurance plan for credit cards, debit, retail, and membership and retail cards, in case of theft, loss or fraud on the cards. It requires the cardholder to pay a fixed yearly fee to use the service. In India, this service is provided by two service providers - Credit Protection Plan (CPP) and OneAssist. They offer various card protection plans for different cards based on information such as credit limits, etc.
Single Insurance Plan: Credit Card Protection services are single insurance plans that offers coverage for more than one card, be it credit card, debit card, PAN card or Driver’s License.
Economical and One-time Premium: CPP service providers require cardholders to pay a minimal premium yearly for subscribing to the service. The annual premiums for these services are as low as Rs.899.
Easy Blocking: For subscribing to the plan, all you need to do is register your card’s details. Once registered, in case of theft or loss of card, all you are required to do is call the service provider and all your cards linked to the plan are blocked. You do not have to go through the herculean task of calling each bank, asking to block the cards, in case of loss of multiple cards.
Card Replacement Assistance: The card protection plan also provides assistance in replacing the misplaced cards.
Quick Card Cancellation: The CPP service provider connects with the concerned banks of your credit and debit cards in order to initiate an immediate process of cancellation of your misplaced cards. The expenses incurred in unauthorized transactions in case of stolen cards are also paid for, by the CPP service provider.
Emergency Financial Assistance: If you lost your credit card or debit card or any other card overseas, CPP services offer emergency cash advance for settling unpaid hotel bills or arranging travel tickets. If you are within the country, emergency assistance from the CPP service provider reaches the cardholder within 24 hours, while if on a trip abroad, it takes about 48 hours to get assistance. There is no interest charged on the emergency cash advance provided you under this plan, however you are required to repay the amount in full within 28 days.
PAN Card Replacement for Free: You are also eligible for a fraud protection feature under the CPP, where your PAN Card is also protected against loss, theft, fraudulent online use, etc. In this case, the CPP service provider ensures your PAN card is replaced when lost, within the shortest time span. There is no charge for this replacement as it is done by the CPP provider on your behalf.
Subscribing for a CPP is very easy, it usually involves the following steps:
Opting for a CPP is a great idea, provided you are sure if it will benefit you. Some of the points to look out for, while applying for a credit card protection are:
A credit card insurance is not a must for anyone, but one must keep in mind that credit card insurance covers are limited as it helps you with just one credit card.
You can easily cancel the Card Protection Plan by calling the Customer Care of your bank between its working hours. Make sure to do this with your registered mobile number.
A credit card protection service will ask the cardholders to pay a small premium amount on an annual basis for them to subscribe to the service. The premiums can be as low as Rs.899 per year.
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