Is there an investment opportunity in PSP Projects shares?

Plastic money stored in the form of credit cards, debit cards or loyalty and membership cards form a crucial component of one’s personal finances. They are simple to use and a highly preferred mode of payment in metros. But if you misplace these cards, there is a high probability of possible misuse of the money by smart fraudsters today. While getting the lost card blocked is always an option, one can also avail a card protection plan (CPP) that helps by providing insurance cover against any card loss, theft or fraud.

What is CPP?

A CPP essentially offers cover for credit cards, debit cards, membership cards and even retail cards. It requires the cardholder to pay a fixed yearly fee to use the service. In India, this insurance service is provided by 2 service providers – Credit Protection Plan (CPP) and OneAssist. Major credit card providers also offer card protection plans.

They offer various card protection plans for different cards based on information such as credit limits, etc. They also include the facility to block the lost cards and apply for a new card by directly contacting the issuing company or bank.

Features of CPP

A CPP is primarily a single insurance plan that offers coverage for more than one card, be it credit card, debit card, PAN card or Driver’s License. At the same time, these plans are comparatively very economical and one-time premium. As per BankBazaar.com, the annual premiums for CPP services are as low as Rs 899.

The CPP service provider connects with the banks of your credit and debit cards to initiate an urgent process of cancellation in case the policyholder has misplaced their card(s). The expenses incurred in unauthorized transactions in case of stolen cards are also paid for, by the CPP service provider.

If you lose your credit or debit card abroad, CPP provides emergency cash in-advance to settle unpaid hotel bills and arranging travel tickets within 48 hours. If you’re in India, emergency assistance from the CPP service provider will reach the cardholder within 24 hours.

There is no interest charged for an emergency cash advance under this plan, however, you must repay the amount in full within 28 days from issuance.

Another important feature of CPP service is PAN replacement feature. The cardholder is eligible for fraud protection against loss, theft, fraudulent online use, etc. of your PAN. The CPP service provider ensures your PAN card is replaced when lost. No money is charged for this replacement facility.

How to apply for CPP?

You need to select the card protection plan and fill the application form. The form is available online on service provider’s or banks’ registered websites. Now you can pay the premium amount as per your card and as offered by the service provider.

Normally, the premium is required to be paid at once in the beginning of the plan itself. After receiving the premium amount, the service provider will send you a welcome pack. It includes a registration form, confirmation letter as well as terms and conditions of the membership.

Watch outs

While selecting a card protection plan, go through the list of banks that are tied up with the providers. Check all the plans being offered by the service provider as they may differ depending on the bank as well as your card.

Always check out the maximum damage loss that you will incur against the plan chosen and the maximum reimbursement that can be availed on your plan.