According to the latest government reports, India collectively recorded more than 50,000 cases of debit card and credit card frauds in the Financial Year 2020. Although the numbers are more or less consistent with the previous financial year, i.e. FY 19, it is still an alarming trend that shows no signs of slowing down.
- 228.4 crore – Net amount stolen by means of debit cards, credit cards, and net banking frauds from April ’19 to December ’19
- 9% – Increase in the amount stolen through fraudulent use of debit and credit cards, and net banking from FY 19 to FY 20.
- 43% – The highest share of fraudulent cases was recorded in Maharashtra from FY 17 – FY 20
While the government and the RBI are collaborating on devising measures to prevent the upscale of frauds in India, it falls on individual cardholders as well to ensure their finances remain unscathed from the disturbing trend. Individuals can, therefore, opt for policies like card protection plan offered by specific financial institutions.
What is a card insurance policy?
It is an insurance scheme that provides financial coverage in the event the policyholder suffers a loss on account of unauthorised transactions using their debit and/or credit cards.
Also known as wallet protection plan, it offers a host of other features to deliver the policyholder from several consequences that can come about from a loss of wallet, which contains several essential items like PAN card alongside debit and credit cards.
What are the features of a card protection plan?
Here are the features that a card protection plan offers to policyholders –
- Card blocking service
One of the primary features of the wallet insurance policy is that policyholders can block their ATM or credit cards with a single call if those were to be stolen. It would relieve the distress of visiting the card issuer personally and also provide for prompt action, quintessential in case of wallet losses.
- Financial coverage
The most critical feature of Pocket Insurance & Subscriptions like Wallet Care plan provided by Bajaj Finserv is the financial coverage it provides on account of monetary loss due to fraud.
- 589.14 crore – Total loss due to fraudulent usage of credit cards, debit cards, and net banking from FY 17 – FY 20, as of December 2019.
This card protection insurance policy covers a host of frauds, like phishing, PIN-based fraud, card present and not present transactions, etc.
- Assistance during travelling
Individuals with an insurance wallet policy can avail assistance if their wallet is stolen when travelling, either in India or abroad. Such benefit involves direct cash assistance in India, and advance payments to hotels and travel ticket advances. It would ensure minimal inconvenience when travelling.
- PAN card replacement
Another critical feature of a credit card protection plan is that policyholders can avail compensation for the expenses made to avail a replacement of their PAN card, in case it gets lost.
Apart from that, individuals can also opt for identity assure policy to ensure financial assistance to address the issue of identity theft adequately.
Read Also: How Credit Card Insurance Work
- According to a recent survey, 4 out of 10 individuals in India have been victims of identity theft.
The implications of identity theft can be severe, leading to fraudulent card cloning and immense financial losses. Individuals can also choose to purchase a fraudulent charges insurance cover to acquire optimal financial coverage in such cases.
How to purchase a card protection plan?
In order to purchase a credit card insurance policy, individuals can follow the steps mentioned below:
- Visit the official website of an insurance provider.
- Browse the products to find the particular policy.
- Fill out the application form after clicking on “Apply now.”
- Pay the nominal premium amount using any of the online payment methods mentioned on the portal
The credit card insurance protection insurance plan will be activated within a few days post the formalities mentioned above.
Financial experts attest to the fact that as technology advances, so will the fraudulent elements. In that case, precaution is paramount, and they suggest keeping in place policies like card protection plans to ensure minimum loss due to such inevitable and inconvenient developments.