Pvt banks offer card cover to woo users

CHENNAI: Many travellers have faced the dilemma of losing their wallet which carried all the credit and debit cards, cash and even the passport.  Cashless and anxious, the situation could be terrible especially when you are travelling abroad with family and have to foot bills such as hotel expenses or even travel. To add to your woes, such lost/stolen cards are often subject to fraud which compound problems when you finally get back home. Recognising these needs, private banks such as Kotak Mahindra, Citibank, Standard Chartered and HSBC are offering card protection to their customers at less than Rs 3 per day. 

Card protection, which is a new phenomenon in India, but prevalent in developed countries, allows customers the option to block all cardsall financial and non-financial cards including credit, debit, loyalty and membership cards—with fraud protection up to Rs 20 lakh, emergency hotel and travel assistance of Rs 1.2 lakh and emergency cash assistance of another Rs 60,000. 

In collaboration with CPP Assistance Services, these banks are offering card protection for theft and loss that may have occurred anywhere in the world. There is no cap on the number of cards that can be protected under a membership, valid for one year and renewed thereafter. According to a study by AC Nielsen, there are 26 million credit card users in India, with an average person’s wallet containing at least one debit and one credit card. 

“If one loses a card while travelling , both abroad and within India, all they need to do is call CPP 24X7 helpline. CPP will report the loss to all the card issuing banks that the customer has reported it as lost. We will also arrange to advance payment on behalf of the customer immediately to the hotel in this moment of distress as well as arrange for ticket replacement so that the member can get back home safe and pay back on return (in 28 days). Also built into the plan is an insurance cover that protects the member from fraudulent use arising out of a card loss,” Gagan Maini of CPP said. The card protection begins seven days prior to the loss report and extends to any period after it. 

Card protection also provides for valuable document registration which holds the details for times when the original documents are not at hand. The niche protection plan immediately found takers and Kotak Credit Cards was amongst the first to offer the service to customers. While card insurance products are currently available in the market, Subrat Pani of Kotak Mahindra Bank feels dedicated card protection plans are more helpful. 

“There are insurance plans available that help the customers in case of card fraud but each card company has its own insurance plan. As such, for a multiple cardholder, there are numerous policies to keep track of and numerous numbers to remember to block cards in case of a mishap,” Pani, who heads Kotak Credit Cards said. The initial responses from cardholders have been very encouraging as it frees them from the hassles of managing multiple cards in case they are lost or stolen, he added. 

Source:Economictimes