Credit Card Insurance: What are the features and benefits?

What makes a particular credit card attractive to you? Is it the low interest rate, an amazing reward program, or the zero annual fees? Whatever prompts you to take the plunge, there is one very significant feature that is often forgotten: the insurance benefits that your credit card offers. Even if you don’t use your credit card much, the credit insurance benefits make it worthwhile to hold on to.

There are several types of insurance coverages that come with a credit card. Your credit card issuer will be happy to explain to you the various insurance protections available, but to get you started, here’s a round-up of the types of credit insurance in India typically offered by credit cards.

1. Baggage loss/Delay Insurance
 

Did you know that many credit card companies offer cover against your baggage being delayed or stolen during air travel? If the baggage was delayed or lost due to the negligence of the airline company, you have the right to file a claim with your credit card issuer. However, there are a couple of conditions that must be met before you can seek the insurance benefit claim. Your baggage must be delayed beyond 48 hours at the arrival destination and you should have used the insured credit card to pay for the flight ticket.

2. Zero liability if your Credit Card is stolen
 

It can be very stressful to lose your wallet which may contain important documents such as your original ID and debit/credit cards. This can even result in fraudulent transactions on your card in case someone unscrupulous gains access to it. The zero-liability cost cover on your credit card protects you against any such unauthorised activity. As soon as you report the loss of your credit card with the credit card issuer, you will not be held liable for any fraud that takes place with your card.

3. Travel Insurance - flight delay or cancellation
 

There can be several reasons why your flight may be delayed or cancelled – strike by the airline staff, natural disaster, civil unrest, mechanical failure etc. Your credit card provides insurance protection for such eventualities. You should check with your credit card issuer exactly what coverage is available to you. For example, you may be reimbursed for expenses incurred on flight tickets, hotel reservations, restaurant bills, taxi fares, etc. Remember, to make such a claim it is important that all the bookings should have been done using the relevant credit card.

4. Purchase protection
 

Purchase Protection is a cover against Standard Fire and Allied perils and Burglary in residential premises of the cardholder as per the records of the Bank only. The cover is valid for 60 days from the date of purchase and for purchases on IDFC FIRST Bank Credit Card only.

5. Credit Insurance
 

The main purpose of using a credit card is to be able to use it as a payment alternative where you have the freedom to make the payment at a later date. However, in certain situations the cardholder may not be able to settle their credit card dues in time because of loss of income or any other genuine reason such as critical illness, job loss, disability etc. Credit card insurance can help in such a situation as it offers financial protection to the cardholder.

Conclusion
 

The common insurance covers listed above are usually included as a part of credit card insurance. But the exact coverage and benefits can vary, so it is important to check the terms and conditions carefully. IDFC FIRST Bank credit cards offer an extensive insurance coverage plan that includes various insurance benefits for credit card holders, such as personal accident insurance, lost card liability insurance, and personal air accident insurance.

Exclusion
 

• Fraudulent transactions done by person known to the cardholder.
• All Losses arising from breach of 2nd level authorizations Exclusion (Cards details, Password, OTP or PIN with fraudster).
• Vishing - Any fraudulent loss or damage arising due to information obtained by unauthorized access to sensitive information by masquerading as a trustworthy entity in a voice communication.
• Claim due to deliberate breach of law
• Gross Negligence
• Any failed/ duplicate/ declined transactions by host website/ authorized bank
• Any losses arising due to server hacking or data breach

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.