Credit cards are widely popular for many reasons, including their perks and offers. Your credit card may even offer complimentary insurance cover. The type and coverage amount of insurance vary from bank to bank as well as from card to card.
We discuss all the insurance benefits that you can avail on a credit card:
1. Air Accident Insurance
If you have booked an air ticket using your credit card, you will be eligible for air accident death cover. In the unfortunate event of plane crash or any other type of air accident, if you die, the nominee will get the coverage amount from the bank. The amount varies from card to card. Some banks may offer up to ₹ 1 Crore.
2. Fire and Burglary Protection
In case of fire and burglary, you can get benefit of the insurance on your card, if any. The minimum and maximum value of goods insured will be pre-set by the bank.
3. Travel Insurance
Your credit card can cover accidents that happen when travelling. Trips may be cancelled, or baggage may be lost, or a passport may be misplaced, or other reasons that trips may be interrupted. If payments are made with your credit card, the insurance can help cover losses. Some cards may cover domestic as well as international travel.
4. Emergency Overseas Hospitalization
You may be prepared for small medical emergencies when travelling abroad but if, unfortunately, you come across a bigger problem, your credit card is there as the backup. Some cards offer emergency overseas hospitalization up to a defined limit say ₹ 50 Lakhs. A few banks have tie-ups with foreign hospital chains so that you do not have to face any hassle in such difficult times.
5. Emergency Assistance
In case of a loss of cash, wallet, baggage, or other facilities while travelling, your card will cover emergency hotel and travel assistance. In India, you can avail emergency cash assistance up to ₹ 20,000. Your card can also cover emergency hotel expenses and travel tickets for a cap of Rs. 1.6 lakh each.
6. Rental Insurance
If you rented a vehicle that has met with an unfortunate accident, then the credit card with which you made the payment can cover the insurance cost of the damage done to the vehicle. However, this particular insurance does not cover the theft, personal harm and injury or the damage to the other vehicle.
7. Lost Card Liability Cover
In case you lose your credit card, this type of insurance saves you from any fraudulent transactions made on the card after you have reported such loss. Once you report the loss, you would not be liable for any fraud made on the card after that.
Credit cards have many benefits, but the terms and conditions attached to them should never be overlooked. All details and offers are mentioned in the booklet that comes with your credit card kit. It is your responsibility to go through it and make the most of it. Your credit card can even save you more money and give you insurance when you least expect it. If there are still doubts regarding the credit card insurance, then you must contact your bank and ask them about the same.