Credit card protection insurance plans

We live in a world of credit. Most of things in our life come with a credit. There are various means through which we can avail facility of credit and Credit Card is one of the most widely used methods of availing credit. Plastic money in form of credit card is so common that usage of cash in the real time has gone down drastically. From booking air, train tickets, shopping, paying utility bills and buying anything online.

Credit cards have gradually become important part of everyone’s life and in some cases; their involvement in individual life is so high that it can be called addiction. But managing credit card is problem for many users. With the increased usage of credit card, they have become one of the main targets of thieves, cheaters and hackers. Everyone is carrying so many credit cards that often users can’t even remember the number of cards he or she is carrying in the wallet.

So if someone has dropped or forgets the credit card somewhere, it may take some while before the individual actually realizes about it. Credit card is extremely easy to use so if they are wrong hand, it can actually make it a very expensive affair for the real holder.

There are numerous cases someone has lost his or her card which was picked up and used by someone else later. Often these kinds of thieves or cheaters do heavy shopping and actual holder bears the burden. Misuse of credit cards by unauthorized users like them has become a major problem today. Even Reserve Bank of India has made sure that there is a process of double authentication for all online credit card transactions. It is mandatory for all banks in India.

With all of these developments in the credit card industry, insurance companies have come up with insurance covering credit cards bills upto a limit of 1 to 2 lacs on stolen cards. These insurance policies often don’t cover online transaction. Policy holder is expected to inform the insurance company within a stipulated time period on card theft or lost. Insurance company will pay the card dues up to the amount mentioned in the policies.

But there are quite a few exclusions in these policies like online transactions and time frame. These insurance polices can be tricky also, so make sure to go through the inclusions and exclusions of the policies carefully. So if you are someone who is carrying lots of credit cards in your wallets and use them quite frequently, then probably it is not a bad idea to consider these credit card fraud protection plans. Many Insurance companies in India are currently offering these products to their customers. Best way to approach these insurance companies is to go through your credit card issuing bank.