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Can My Credit Card Also Provide Me Insurance Coverage?

Adhil Shetty

I’m on the hunt for a credit card. Should I go for a card with insurance benefits? What are the various insurance benefits that cards offer? – V. Vinod

Answer: A credit card is a smart spending tool. Many people don’t know that there are some credit cards which come with attractive insurance benefits. Some important insurance benefits of credit cards are as mentioned below.

One – Personal accident cover: Depending on the credit capacity of the card, it may offer a personal accident cover to the cardholder up to Rs. 40 Lakhs or even more.

TwoTrip cancellation cover: Sometimes you book flight tickets, hotels, cabs, etc., during a holiday. But you end up cancelling for unavoidable reasons. If you have booked the trip using your credit card, you can make a claim for losses incurred due to the cancellation. Trip cancellations in situations such as accidents, severe illness, etc. are covered under this feature.

Three – Lost baggage insurance: If you have lost checked-in baggage due to deficiency in service by an airline, you can claim the lost baggage insurance under your card insurance. The flight ticket needs to be booked through the eligible credit card.

Four — Purchase protection feature: If you have bought something online using your credit card but received a damaged item or had your item stolen before delivery, you can use the purchase protection cover available under the card to claim your money back.

Before you make any claim through your credit card insurance, you must go through the terms and conditions mentioned in your card agreement. The insurance protection may vary depending on the card type, limit, and the issuer.

Have a question on personal finance? Ping me on Twitter at @adhilshetty with the hashtag #AskAdhil.