How to insure your credit card against fraud

Imagine this. You are on your way to reach your traveling destination; you stop by at a shop to make some quick purchases. You decide to make your payment through credit card, but to your horror, it has gone missing! Worse, you can't find your wallet too. Reality strikes; and you know your wallet has been stolen. What can you do?

If you owned just one card, it would be easier to just call up the bank and inform them about the loss. But what if you have multiple cards, or lost your wallet that contained passport, driving license, permanent account number (PAN) card too.

Saviour: CPP!

Here's an innovation to help you - Card Protection Plan (CPP). A CPP protects your card against any misuse due to card loss, theft and related fraud. It also helps you in the documentation work of your lost passport, PAN, driving license, etc.

Currently, this plan has been launched in India by four banks - Citibank, HSBC, Standard Chartered and Kotak Mahindra Bank in partnership with CPP Assistance Services Pvt. Ltd.

Business Manager Cards, Citibank India, Sandeep Bhalla, recently said in a release, "Losing one's wallet can be devastating, especially if its contents are stolen and abused. With this protection offer, consumers can now travel and use their cards with a peace of mind, anytime, knowing that their card is protected."

What does it cover?

CPP is available on your financial cards such as credit, debit and automated teller machines (ATM) and also on non-financial cards such as membership, loyalty. Cardholders can choose the relevant plan depending on his/her lifestyle and requirements. The annual membership fees are Rs 995 and Rs 1295 for Classic plan and Premium plan respectively (see plan details page 3).

How much cover?

With a Classic plan you get a fraud protection cover of Rs 50,000. According to this cover, your cards are protected seven days before the loss is reported to CPP India. That means, if you lost your card but did not realise it for a long time, any fraudulent purchases for seven days before you notify the loss will be covered. The cover increases to Rs 15 lakh for any fraudulent purchases after notification of the loss.

Let's say, you lost your card on 20 March and you reported to CPP India on 1st April. The cover will begin from 23 March i.e. 7 days before the day of reporting. If there is any misuse during these seven days, then CPP will cover the fraud. Any misuse between 20 March and 23 March will not be covered.

What are the limitations?

While this plan provides protection for your cards, don't ignore its limitations.

• Fraudulent use Like mentioned above, the plan doesn't completely provide cover against fraudulent use of cards. The plan comes handy only if the misuse occurs seven days before the card loss notification or after notification.
• No cover for online frauds Another thing which the plan doesn't cover is online frauds. When you have credit cards, you run the risk of your Card Verification Value or CVV number being misused for online transactions by a third party. If something of this sort happens with you, the plan will not provide any cover for the fraud occurred.

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Other benefits

Apart from providing fraudulent protection, CPP also offers other benefits, which are listed below.

Documentation help

If you have lost your money, passport, PAN card, driving license along with your wallet, CPP will help you with the documentation process to get new ones.

Emergency travel and hotel assisstance

Not just that if you lose your wallet, it will even arrange for emergency money and travel assistance for safe return to your destination.

How should you approach CPP?

You just need to call up the CPP 24-hour toll-free helpline number. It will then take up the matter and make the necessary calls to notify your banks to block your cards.

Where can I get the plan?

You can either approach the banks who have launched this plan or directly approach CPP India to get one. It's not necessary to hold an account with the banks to get the plan.

Wrapping up

While plastic money comes with a lot of convenience, its misuse can be quite a horrifying experience. By spending a little more you can buy yourself peace of mind; but don't miss to read the fine print.

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Source: www.cppindia.com

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