In this era of cashless transaction, it is really hard to find someone who does not use debit or credit cards. The use of card transactions has been rapidly increased in the last few years, so are banking frauds. It is important to protect your card from frauds or thefts. Card Protection Plan (CPP) is a service offered by various banks and insurance companies which protects your cards from loss, theft or frauds. Not only your credit or debit cards, Card Protection Plans also provide cover for documents such as Permanent Account Number (PAN) card. Customers have to pay a fixed amount in order to insure their cards. The banks offer several card protection plans to choose from depending on the service and tenure.
How it works:
Various public and private sector banks have different Card Protection Plans to choose from. One has to pay an annual premium to avail the service. Depending on the service and tenure the cost of a Card Protection Plan usually ranges between ₹900- ₹2,100. Premier banks like the State Bank of India, ICICI Bank, Kotak Mahindra Bank, IndusInd Bank and Axis Bank offer Card Protection Plans. The scheme covers your credit and debit cards from any fraud due to loss/theft, skimming, counterfeiting, phishing, online usage and PIN based frauds.
24*7 toll-free number to report loss/theft of your card: There is a 24*7 toll free number where customers can call in case their cards get lost or stolen. The banks will call the issuer — Visa, RuPay or MasterCard — to deactivate your card at the earliest. It will really come handy if you use multiple credit cards and need to block all of them in case of an emergency. You do not need to call every single bank individually to block your cards, the insurer or bank will do that for you. You will also get a replacement at no extra charge under this scheme.
Emergency travel cost: The Card Protection Plan will take care of your emergency travel in case your cards get stolen or lost while travelling. Under Card Protection Plan, the bank or insurer will book a travel ticket for you. Your accommodation cost like hotel bills will also be protected under the scheme. State Bank of India (SBI) offers up to ₹1.6 lakh hotel bills under the Card Protection Plan. A travel assistance worth up to ₹1.6 lakh will also be offered.
Along with the emergency travel assistance and accommodation, all these Card Protection Plans offer an emergency cash benefit. The amount on the scheme that you are opting for.
Not for you, for your family members as well: These card protection plans often allows you to add your family members in the scheme without any additional charge. In State Bank of India's Premium Card Protection plan, you can enroll your spouse. In SBI's Platinum Card Protection plan, you can enroll up to 4 members of your family (spouse and parents). They can avail all the benefits of the Card Protection plan.
Replacement of Pan card: Apart from the debit and credit cards, the Card Protection Plan also covers the loss and theft of other important documents such as PAN card. The bank will get your PAN card replaced without any extra charge. You can also register details of your passport, driving license, share certificates, insurance policies under Card Protection Plan.
Block your SIM if you lose your phone: In case you lose your mobile phone, Card Protection Plan will have your back. The bank or insurer will block your SIM and will arrange a new SIM for you. Most of these Card Protection Plans have a tenure of one year.