7 Benefits of Credit Card Insurance in India

Different card providers offer different credit cards with various insurance covers applicable on each card. The insurance benefits can be learnt with the guide provided with the credit card welcome kit. However, let us find out some general, lesser known insurance benefits associated with the credit card:

1. Insurance credit

Accidents never knock our doors. They are unfortunate and unexpected. Accidental deaths can waive your outstanding credit balances up to Rs. 50,000. The exact amount varies from bank to bank. In the case of an inactive card, the death certificate is mandatory to get the claim.

2. Rental car insurance

In case you rent a car without taking any insurance, and the car due to an unfortunate accident suffers a significant damage, then rather than paying from your pocket, you can claim the car rental insurance if you've paid for your rental car with your credit card. However, this insurance does not cover any theft of valuables, damage to other vehicles or personal injuries in the accident.

3. Personal accident insurance

It is ever more sensible to opt for a Personal Accident Insurance Policy. However, these insurances are also provided with the credit cards. In case if road accidents causing severe injuries or deaths can get you claims ranging from Rs. 2 lakhs to Rs. 4 lakh. Air-mishaps can get you claim an amount ranging from Rs. 10 lakhs to Rs. 40 lakhs. The exact amount differs depending on the type of card and the card provider.

4. Trip cancelling insurance

There might be an unfortunate emergency demanding cancellation of your bookings and trips. There are several umpteen reasons like sudden illness, accident, family problems, etc. that require you cancelling your ticket at the last moment. However, if these tickets were booked with your credit card, the trip cancellation insurance helps you claim the losses provoked due to the non-refundable flight. However, this coverage is not always available with every credit card. Any cancellation due to changing of weather or previous illness is not considered.

5. Lost baggage insurance

Sometimes there are annoying circumstances like loss or theft of your check-in baggage because of the negligence of the airline company. If you do not get your baggage within 48 hours at the arrival destination, you can claim lost baggage insurance. However, it is applicable only if the payment is made through the credit card.

6. Mobile phone replacement insurance

This is one of the rarest insurance benefits offered by the credit card companies. Suppose your cell phone has been stolen or damaged, the insurance claim lets you cover your purchasing cost of the phone. Again, the purchase of the phone should be through the same credit card.

7. Purchasing protection

Purchasing protection is a popular benefit offered by the card providers. This is a protection against any damage to theft of the product you've brought. The cover usually ranges up toRs. 50,000 valid till 180 days of the purchase. The exact amount may vary.

Final words

There are many more insurance schemes offered with different credit cards. Some of them to mention are a loss of passport, flight highjack, etc. however, in the case of accidental deaths, the following documents should be provided in settlement of claims:

  • Notice of death within 30 days from the time of mortality. An elaborated description of the accident is also mandatory.
  • FIR, Death certificate, post-mortem report, medical examination report are the primary documents to be submitted within 60 days from the time of mortality. In case the documents aren't in English, one has to get is translated before submission.
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