What You Need To Know About CPP In India?

National Payments Corporation of India, commonly referred to as NPCI, published in a report that customers of at least 19 reputed financial institutions suffered from fraudulent attacks. As a result, malicious forces have been successful in siphoning at least Rs.1.3 crore from those individuals. While this has caused quite a concern among debit and credit card users, insurance aggregators have introduced a protective option to mitigate such possibilities further.

Card protection plan or CPP in India is an efficient way to protect oneself from such threats and financial losses. However, individuals often find themselves unaware of the aspect, features, and coverage under CPP from which they can benefit financially through advanced security measures.

What is an effective card protection plan (CPP)?

As is seen mostly, Indians prefer to store credit and debit cards in their wallets for timely usage and maximum convenience. In addition, they keep certain vital identification documents close to themselves in their purses. Yet, their wallets are often exposed to misplacement, theft, or simply damage. As a result, their payment cards and identity documents may be misused if they fall into the wrong hands.

A card protection plan financially protects an individual against the misuse and unauthorised transactions carried out on stolen credit and debit cards. They are also eligible to receive the replacement cost of vital documents such as PAN card under this comprehensive insurance plan.

What are the benefits under a card protection plan?

A card protection plan mainly functions as a means of credit card insurance in case of loss, theft, or inauthentic uses. The fundamental benefits of such an insurance plan involve the following –

• Round the clock service for card blocking – A credit card protection plan enables a user to contact the insurance aggregator in order to block a lost credit card. As a result, they hardly have to be apprehensive of illegal usage and the subsequent financial loss and liabilities.

This beneficial feature ensures that an individual can block all his/her credit and debit cards instantly with a single call. In short, this is a quick response measure to avert financial fraud and tragedy.

• Protection against frauds – Reputed insurance providers offer complimentary services with their credit and debit card insurance policies.

Scammers usually employ techniques such as cloning, phishing, and skimming to rob one of his/her finances. Therefore, these insurance aggregators provide extensive financial coverage in the event that such an unfortunate and malicious incident happens to someone.

In addition, customers can also receive insurance coverage for card-present and card-not-present transactions, thus limiting their financial burden significantly.

• Aid for emergency travelling – Misplacing credit or debit card is a serious hazard while travelling. This can cause unfortunate delays or refusal in service from hotels and accommodations. As a result, CPP in India ensures that individuals receive emergency cash advances to finance their stay in a hotel in case of misplacement or theft of plastic money.

Hence, a card protection plan like a Wallet Care cove from Bajaj Finserv’s  Pocket Insurance & Subscriptions serves as an assured way to reduce the financial burden while dealing with the consequences of losing credit and debit card. Besides, this also enables them to avail SIM blocking services during misplacement of mobile phones along with their wallets.

Individuals can also consider opting for an identity theft cover to recover costs for legal expenses and lost wages when addressing such identity fraud. It is an instrument that allows an individual to substantially reduce the financial liabilities while encountering such a scenario.

Debit card holders can also insure themselves financially against unexpected ATM robberies and assault with an ATM safeguard insurance plan.

CPP in India is thus an effective insurance option to protect oneself financially against expenses arising from misuse of credit or debit card when lost or misplaced. With this insurance plan, they can further block their cards immediately to prevent unauthorised use by fraudulent and unscrupulous elements.