With the awareness about the benefits that different types of credit cards offer, most Indians are surely quite enthusiastic about it. They seem to be least bothered about how these cards put a hole in their wallets and instead consider it to be a fashion statement. You will find cards ranging from credit cards, debit cards, co branded travel cards, plain vanilla cards, cards for fuel recharge, reward points, shopping, air travel etc.
In such a scenario where you posses many number of cards, there is a fair bit of a chance for any card that you hold, to be stolen. And such stolen cards can be used to swipe and carry out purchases illegally. Considering this possibility, card issuers these days are providing an in-built protection cover. This facility is usually provided by high credit risk earning customers who hold high-end credit and debit cards. A zero liability cover is what is being offered next.
Banks like the Axis Bank, ICICI Banks, and HSBC etc are providing their credit card and debit card holders with this facility wherein they are not required to pay any additional charge to avail this service. The credit card or debit cards providers ensure to reimburse their customers with the required amount if there have been any unauthorized purchases. Depending upon the banking policies you can benefit from a cover of Rs 10 lakh.
In the light of requiring special covers for your credit and debit card, you can contact the CPP Assistance Service. The CPP Assistance Service is an insurance protection group under the management of Bajaj Allianze group. In the eventuality of your card being stoles, you can inform the same CPP and register a complaint about the loss or damage
In the event of your card being lost or stolen; you need to inform CPP through its toll-free number. You do not need to inform individual card issuers about the loss. Depending on the plan selected, the cover could go up to Rs 1 lakh prior and Rs 20 lakh post-intimation. You may have to shell out an annual fee ranging from Rs 995 to Rs 1,295, depending on the cover chosen. This kind of protection will only be activated if the card is stolen or lost and does not cover online frauds.
But with RBI making technological advancements in the online portal, the number of cases pertaining to fraudulent practices with credit card or debit card has come down considerably. The dual factor authentication process has defiantly proven to be a savior in such scenarios. TATA AIG General Insurance have also upgraded their services and are providing a cover when the card has been involved in the fraudulent practices thereby providing you with an insurance cover if your credit card or debit card has been misused.
Just a reminder, ensure that you utilize your credit card with great prudence. Opting for a debt like personal loan or a home loan in future cannot be possible if you do not have a strong financial record.
Apart from the services that banks and various other credit or debit companies provide to ensure your protection, it is important that you report the theft or the unauthorized purchase to your respective card provider within 12 hours you notice the fraud or theft. The reason being, the insurance cover against such incidents is only provided if it has been reported within 12 hours and not beyond that. Also, the insurance will not cover the thefts that involve cash advances that had been made using the card.
Before you go ahead and take the maximum benefit of the plastic cash, it is important that you read the terms and conditions of the policy of the card you are holding so that you will be fully aware of the covers you are entitled to benefit from and under what circumstances you will not be provided a protection for.