Own a credit card? Know these insurance benefits available to you

Date : 09/09/2020
Read: 6 mins

Have a look at some of the most common insurance benefits that can be availed with credit cards

Own a credit card Know these insurance benefits available to you

Did you know that credit cards come with insurance benefits? Most credit cards offer insurance for lost baggage, delayed trips, purchase protection, and more. Credit card insurance policies cover a lot that users aren’t aware of. If you own a credit card, do check out the insurance benefits open to you. At the same time, be sure to check for any inclusions and exclusions.

Let’s take a look at some of the most common insurance benefits offered to credit card holders:

1. Baggage delay insurance

This can be used in cases when your baggage gets delayed (in most cases, by six hours or more) and you have to purchase essential items. If there is a delay in baggage claim, talk to an airline representative and get a written confirmation of the baggage delay. You will need this for claiming the insured amount from your credit card company.

Terms and Conditions you should know:

Baggage delay, in most cases, is insured per person and has a maximum limit.
You should also check the delay time period after which your insurance will cover you, this is usually 24 hours, but may differ.

2. Zero-liability policy

More than an insurance policy, this is a benefit that credit card holders should avail of. If your credit card gets stolen, you should immediately report it to the bank and other concerned authorities. You will have no liability on any of these charges.

Terms and Conditions you should know:

In most cases, the only condition for this policy to benefit you is that you report the loss as soon as you realise it is missing. Only after you file a report, will the zero-liability policy kick in.

3. Lost baggage insurance

This insurance covers you in case your baggage or any of its contents have been stolen, or if the bag is lost. While this is usually applicable only to checked-in baggage, some companies may even cover your carry-on or hand baggage. In case of theft or lost baggage, most credit card companies will reimburse you for the bag, as well as its contents.

Exclusions or Terms and Conditions you should know:

Check which items are excluded from the plan
Some companies do not cover any cash that was lost with your baggage, check with your insurer
Check the limit up to which your personal belongings will be insured

4. Flight cancelled/delayed insurance

If your flight gets cancelled due to bad weather, terror attacks, or any other reason covered by your credit card company, you are eligible for a reimbursement. Be sure to check the covered reasons before claiming the insurance. Some companies even offer some reimbursement in case your flight gets delayed. This insurance will be applicable to cardholders only if they have made bookings from their credit cards.

Exclusions or Terms and Conditions you should know:

You have to provide documents supporting your cancellation reason and any other expenses incurred
In case you're cancelling because you're ill, you will need proof in the form of advice given to you by a qualified doctor
Most companies expect you to bear a delay of at least 24 hours from the originally scheduled arrival time

Read other terms and conditions carefully before you decide to cancel a trip

5. Medical insurance while travelling

This insurance policy covers you if you get sick or are involved in an accident while on a trip. In the case of an accident, you will be taken to the nearest hospital. The cost of transportation, hospitalisation, and any other necessary medical assistance will be covered by your credit card. Keep in mind, in most cases, you will have to pay the bill first and you will be reimbursed by your insurer later. It is wise to check with your credit card companies about such conditions.

Exclusions or Terms and Conditions you should know:

Any injury you get while participating in adventure sports is not covered.
Every policy will have a maximum amount up to which they can cover you
If you're travelling to another country, you should check if the insurance is applicable there

6. Purchase protection

Did you know all the items you buy using your credit card may be insured with purchase protection? Also known as damage protection, this plan insures items against theft or accidental damage. Different credit card companies have different coverage amounts. The duration for which your purchased goods are protected will also vary from company to company. On the purchase of certain goods, some credit card companies offer an extended warranty at a nominal or no cost. In this case, too, it is a good practice to browse through the exclusions, if any.

Exclusions or Terms and Conditions you should know:

For every item, you will be insured only for the amount charged to your credit card
In most cases, additional charges related to shipping and delivery are not covered
Coverage duration will differ from company to company
You usually need to raise a claim within 1 month from the date your item was stolen or damaged

7. Credit insurance

In case of accidental death of the primary credit card holder, a waiver of up to Rs 50,000 is provided on any outstanding bills. The waiver amount will vary from company to company and you must read the fine print to determine what waiver amount your credit card company is offering.

Going forward, we hope you inquire about any insurance benefits your credit card company might offer you. If you already own a credit card, it is never too late to have a quick call with a representative from your credit card company. You should always be aware of the benefits so that, in case you ever have to use it, at least you won’t waste time reading and understanding the fine print!