Credit Card Insurance in India

Credit card insurance is a specific coverage that credit card holders enjoy. The coverage amount varies based on the pre-conditions of the credit card provider. When choosing a credit card, it is wise to consider the insurance benefits that align with your lifestyle.

If you are a frequent traveller, you can choose a credit card offering travel insurance. On the flip side, if you are a frequent online shopper, you can choose a credit card with purchase protection. Learn about the different types of insurance on credit cards offered in India.

What is Credit Card Insurance?

Credit card insurance helps cardholders protect themselves from transactions that involve risks. It offers coverage for events such as hospitalisation due to accidents, air travel mishaps, lost card liability, and other travel-related incidents. Some plans also include purchase protection and coverage for outstanding dues in case the cardholder becomes disabled or passes away.

It is a credit card protection plan that safeguards cardholders during unprecedented circumstances. It significantly reduces potential losses by covering the expenses of cardholders.

Features of Credit Card Insurance

Here are the features of insurance on credit cards:

• Protection Against Fraud: If your credit card is stolen or lost, insurance on your credit card can protect you against unauthorised transactions and credit card fraud.
• Travel Insurance: Travel insurance on credit cards covers lost luggage, medical expenses during a trip or trip cancellation to protect your expenses while you are abroad.
• Accidental Death and Disability Coverage: This insurance covers family members of cardholders in case of demise or disability of cardholders ensuring financial security.
• Extended Warranty: Credit card protection with an extended warranty period for purchases made using a specific credit card protects against manufacturing defects or product defects.
• Financial Protection: With this insurance, cardholders can ensure financial safety while they use their credit card for multiple purposes in India and abroad.

Types of Credit Card Insurance

The following types of insurance on credit cards are usually available in India:

1. Insurance Protection for Travel: It covers not only trip cancellations due to illness or extreme weather but also travel delays, reimbursing costs for lodging, transportation, or meals. Additionally, it includes coverage for lost or stolen baggage and emergency medical expenses incurred during travel.
2. Protection for Purchases: Usually, banks in India extend purchase protection for a specific period such as 90 days or 120 days wherein purchases using the stolen or damaged credit card are reimbursed. It additionally includes mobile insurance for mobile phone purchases.
3. Fraud Protection: In the event of fraudulent transactions on your credit card, you can claim fraud protection, provided you are covered under the insurance policy and meet the eligibility criteria set by the issuing bank.
4. Credit Shield Insurance and Accidental Cover: Credit card providers extend an accident cover of around ₹5 lahks or ₹10 lahks based on the eligibility of the cardholder. Moreover, banks often cover the demise and disability of the cardholder to protect the family with insurance. 

Top Banks in India Offering Credit Card Insurance

The following list highlights the banks providing insurance on credit cards in India:

Exclusion to Credit Card Insurance

There are certain exceptional cases where the card provider does not provide insurance coverage as follows:

• If a fraudulent activity is undertaken by a person known to the cardholder.
• In case losses result due to a breach in second-level authorisation (card details, password, PIN or OTP)
• If the cardholder knowingly shares card details with an unauthorised entity or individual, resulting in fraud, the incident may be considered negligence.
• Failure or declined transaction by authorised bank
• Losses due to hacked server and data breach

Final Words

Credit card insurance in India helps cardholders enjoy financial protection while they use their card for various purposes. Travel insurance, purchase protection and accidental coverage are the common areas, which Indian credit cards cover under insurance. Based on your needs you can choose a credit card that offers the necessary insurance to protect your finances against unforeseen circumstances.

Certain banks offer credit cards against your fixed deposit and provide added insurance coverage. Booking a fixed deposit with online platforms like Stable Money can help you earn interest up to 9.10% per annum while you enjoy the prospect of getting a credit card in the future.

Download the Stable Money App now to check out the services and book multiple fixed deposits!