Card Protection Plan — Features of Wallet Care and How to Purchase it
The number of active credit cards across India as of 31st March 2020 was 5.77 crore according to data sourced from the Reserve Bank of India. By the same period, the number of debit cards across India stands at 82.85 crore.
India is undoubtedly one of the largest markets for debit and credit cards globally. Advancements in digital payments, growing acceptance of e-commerce, and increasing adaptability of local businesses in accommodating non-cash payment methods are some of the key drivers of increased consumption of cards in India.
However, the growing prevalence of cards in India has also encouraged large-scale frauds causing significant financial distress to fraud victims.
- In the Financial Year 2020, 52,000+ cases of card frauds were reported in India, according to the Ministry of State for Electronics and IT.
- These frauds amounted to losses of Rs.228+ crore.
Thence, it is critical at this juncture of technological progress utilised for the likes of card theft and fraud to secure a card protection plan. With such a policy in place, you can ensure prevention of losses on account of card theft against a nominal annual premium.
What are the features of a wallet care plan?
Before purchasing an insurance plan for the essential contents of your wallet, i.e. credit card, debit card, and also PAN card and the likes, you should check out the following essential features –
Card blocking services
The first and foremost criteria that you should consider when purchasing a card protection plan is the blocking service it provides. You also ought to bear in mind that card theft is a critically time-sensitive issue.
Thus, it is ideal to opt for an insurance policy that provides prompt and easy card blocking service to ensure prevention or at least mitigation of financial losses. Furthermore, consider policies that come with round the clock service to avoid delay in taking action.
Monetary assistance benefits
Wallet theft can be a most pressing encumbrance when travelling, be it in India or abroad. Ergo, you should consider a wallet insurance policy that provides emergency monetary assistance in the event of theft or loss of wallet.
For instance, Pocket Insurance & Subscriptions like Wallet Care policy provided by Bajaj Finserv contain provisions for monetary assistance for emergency hotel bookings, travel tickets, and also liquid cash benefits.
Fraud protection services
A quintessential feature to consider when purchasing a card protection plan is the financial coverage it provides on account of fraud.
- Between FY 17 and FY 20, India recorded more than 140,000 cases of fraudulent practices involving credit cards, debit cards, and internet banking.
In recent years, fraudulent cases have spiked significantly both due to technological advancements and innovative ways of carrying out the same. Phishing and skimming are two of the most widely used fraud techniques. Apart from that, there’s also the risk of theft or loss of card.
Thus, ensure that the insurance policy you purchase provides sizeable monetary coverage for such losses so as to mitigate your financial encumbrance.
Protection of additional contents
Alongside credit cards and debit cards, your wallet might also consist of additional contents like PAN card and even a SIM card. Both of these items are critically valuable and can be gravely misused for identity theft and other illegal practices.
- According to a recent survey, 4 out of 10 respondents in India have suffered identity theft.
Thus, ensure to opt for a policy that comes with facilities like SIM card blocking and reimbursement in case of PAN replacement. Furthermore, in order to receive financial coverage for the legal costs of pursuing a case of identity theft, you can also consider an identity assure policy.
How to purchase a card protection plan?
To purchase a card protection policy to secure your wallet, you need to follow the steps mentioned below –
- Log in to the website of the respective financial service provider and search for the respective product.
- Select wallet care from a range of options.
- Apply by duly filling out the application form.
- Provide necessary documents.
- Pay the premium using an online payment method.
By following these steps, you can purchase a wallet care policy quickly. Your insurance policy will come into effect 2–3 days after fee payment. You should also note that a credit card protection plan remains active for 1 year and claims within that period are subject to the maximum limits for each case as stipulated in such policy indenture.
Women can purchase a purse care policy to avail the same benefits as a wallet care cover. Nevertheless, when purchasing a credit card insurance policy, you should also register your card details with the financial service provider. That way, it would be easier for the concerned authority to process card blocking instantaneously in case of an emergency.
Furthermore, you should learn in full details the procedure behind raising a claim against your card protection plan to expedite emergency services. You can store necessary details like the toll-free number for raising a claim in your mobile for the same purpose.