Everything You Need to Know About Credit Card Insurance

Unexpected situations can arise causing a strain on your bank balance. If you use a credit card, you can rely on credit card insurance. This are covers provided by your card for various situations.

By offering financial protection in difficult situations, it can safeguard you against such a strain. This may pertain to travel, fraudulent transactions and more, and can also help you with emergency assistance.

Types of Insurance on a Credit Card

The types of insurance benefits you get vary depending on the card issuer and card. Premium credit cards, for instance, provide more robust insurance coverage. Here is an analysis of the different kinds of insurance:

Types of Insurance	Features
Purchase Protection	It covers theft, accidental damage, or loss. Available for a limited period after the purchase. Applies to eligible items (specific exclusions often apply, such as perishable goods or used items).
Extended Warranty	It applies to electronics, appliances, and other eligible goods. It only applies to purchases made with the card that provides the warranty.
Travel Insurance Covers	Covers trip cancellations, flight delays, and/or lost or damaged luggage. Travel accident insurance applies in case of injury or death. It also provides benefits related to emergency medical coverage.
Car Rental Insurance	It includes coverage for damage to rental cars. It may not cover luxury or premium vehicles.
Fraud Protection	This feature is effective for online fraud and identity theft. You can get zero-liability protection against unauthorised transactions. Requires prompt reporting of fraudulent activity.
Credit Life Insurance	Pays off the outstanding credit card loan upon death of the primary cardholder Available as an optional add-on with an additional fee.

Claiming Credit Card Insurance

There are a few important things to know when you want to make a claim:

No Premiums: Credit card insurance plans work a little differently from traditional insurance. Usually, you don’t have to pay regular premiums. Insurance protection comes as an added benefit. Certain cards may offer insurance as an add-on, which requires you to pay a small amount.

Coverage: These insurance plans are mainly designed for the primary cardholder. Make sure to read through the terms to know who can benefit.

Process: In the event of the primary cardholder’s death, the nominee must gather and submit the necessary documents, such as:

A death certificate
Accident report (FIR)
Medical and police reports

How It Works

Say your luggage goes missing during a trip. You can file a claim to cover the lost items. Here are the steps to follow:

You can report the lost luggage to the airline and get a copy.
Then contact your card issuer.
After that, provide the airline’s report and your card statement.
The provider sends you a claim form; fill out the form and attach receipts.
The insurance provider will review your claim and if approved, you will be reimbursed as per the coverage limit.

It’s important to note that the insurance may not cover the following situations:

If the luggage is simply delayed.

If the luggage was left unattended.

It is mandatory to understand the specific terms and exceptions of your policy, so you can make a successful claim.

Maximising the Benefits of Credit Card Insurance

Knowing what your card offers, and its inclusions and exclusions is key. To fully take advantage of the benefits, follow these steps:

Understand Your Card’s Insurance Offerings

The first step is to know what insurance benefits your card offers.

Read through the card’s terms and conditions.
Contact the issuer to get a full understanding of the insurance plan if you need to
Be aware of the limits, exclusions, and claims process.

Make Purchases with the Right Card

For purchase protection, extended warranty, and other item-related benefits:

Make sure to use the credit card that offers these perks.
If you have multiple credit cards, consider using the one with the best insurance features when making big purchases.

Keep Records of Purchases

Card issuers may require the following documents to process claims effectively.

Purchase receipts, warranty information, and proof of purchase.

File Claims Promptly

Insurance claims often have time limits:

Be sure to file your claim as soon as possible after an incident occurs.
Don’t delay, as most insurers require claims to be filed within a certain number of days.

The One Credit Card offers a bevy of insurance add-ons that you can get. It also offers a waiver of the outstanding balance of up to ₹50,000 or as per the card’s limit in the unfortunate event of the demise of the primary cardholder.

Apart from these benefits, this lifetime-free card allows you to earn 5X rewards on your two highest spending categories each month. You can also convert bills into EMIs to reduce any financial strain on the One Credit Card App. Explore all its features and apply now.