Cards can be protected through a protection plan

K. ARAVIND

The number of people who do not use debit or credit cards today is extremely low. Card transactions have increased significantly in recent years. With the proliferation of plastic money, there is a convenience of avoiding cash on hand when going on shopping or on a holiday. But consumers need to be careful when dealing with plastic money, as it can lead to significant loss of money if not taken care of. With the increase in card usage, the number of banking frauds has also increased.

The Card Protection Plan provides protection against cards being stolen or used for fraud. This service is provided by various banks and insurance companies. These plans cover not only debit and credit cards but also important documents like PAN card. Customers have to pay a certain amount to insure the cards.

Different public and private sector banks offer different card protection plans to their customers. The charge for such plans will vary depending on the service and duration. At present, plans offered by banks charge between Rs.900 and Rs.2,100. Leading banks such as SBI, ICICI Bank, Axis Bank, Kotak Mahindra Bank and IndusInd Bank have various plans in place. These plans provide protection against financial loss if the card is lost or stolen. It also protects against PIN fraud, skimming, phishing, and counterfeiting.

If the card is lost or stolen, you can call the customer care number at any time and report it. Upon receipt of the complaint, the bank will contact the issuing institution (Visa, MasterCard, Rupay) and request that the card be deactivated. This service is especially useful for those who use multiple credit and debit cards. You do not have to call every bank to block each card. The new card will be available to the customer free of charge.

There are insurance policies available in the market to cover the loss of credit, debit and ATM cards. However, not all insurance companies sell such policies directly to consumers. Many companies provide such protection through banks.

Card protection plans are very useful while traveling. In case a card is lost or stolen during the journey, financial assistance to continue the journey will be available through such plans. Banks or the insurance company, which has developed the card protection plan, will book travel tickets for you. The cost of staying in hotels will also be borne by bank or Insurance Company. Under these card protection plans, family members can be guaranteed protection at no extra charge.

The protection of such plans is available even in case of loss of important documents such as PAN card. The bank will facilitate the issuance of a new PAN card at no extra charge. You can register your passport, driving license, share certificate and insurance policies under the Card Protection Plan.

Even if you lose your mobile phone, you can seek the service through the card protection plan. Banco Insurance Company will take steps to block the SIM and make the new SIM available.

Card Protection membership can be done through bank or online. How many cards of all banks can be protected through this? Most card protection plans have a term of one year.