Lost your debit/credit card? Here's how you can claim insurance

With the advent of digitisation, the risk of fraudulent transactions due to loss/online usage of debit/credit cards, net banking, counterfeiting, etc. has increased. However, there are several banks and insurance companies that offer Card Protection Plan (CPP) to cover losses against fraud or misplacement of debit/credit cards.

The card protection plan provides one point contact to the user to block all the cards that have been lost and also offers assistance to apply for new ones. Additionally, it gives the emergency financial assistance during travel like settling travel bills.

With the easy availability of PoS terminals, Ankit Agarwal, managing director of Alankit Ltd, says users can fill the basic personal details and pay the annual premium depending on all the cards they wish to link to the insurance cover and its tenure.

"On successful payment, a welcome kit is sent to the user that comprises of a confirmation letter, benefits of the insurance cover, terms and conditions with a registration form. This way, the risk of loss/theft of cards can be mitigated and the cardholders can get the coverage against the losses occurred," he explains.

The claim process of this plan depends on the type of insurance and the company.

While for some insurance claims, it is mandatory to file a First Information Report (FIR), other types of insurance do not require the policyholder to file an FIR, according to Bankbazaar.

In most cases, the insured will have to contact the insurance provider’s customer care department and let them know about the claim and send a written request with all supporting documents to the address provided by the customer care executive, adds Bankbazaar.

A few insurance companies, however, also allows policyholders to submit an online claim application.

In case of commercial banks such as State Bank of India (SBI), the card protection plan comes with features like emergency hotel, travel assistance and fraud protection.

"To process a card protection plan claim with SBI, the insured will have to contact the lender and inform them about the claim. SBI will then block the particular card. The insured will be required to send a duly-filed claim form with all supporting documents to the address provided by the customer care executive. Once SBI receives the claim request, within 15 working days the claim will either be accepted or rejected," as per Bankbazaar.

If the claim is approved, within 7 working days, SBI will send the insured a cheque for the claim amount.