Can you get insurance benefits from a credit card?

Can you get insurance benefits from a credit card

Don’t you just love a credit card that has a ton of benefits? Did you know that your credit card can do a lot more than just bring you shopping benefits? Apart from performing the basic duties, a credit card offers you a wide range of benefits like cash withdrawal, cashbacks, offers and discounts etc. But did you know that your credit card could have a hidden feature? Yes! Your credit card also carries a free insurance health cover! No? Well, then you are at the right place! 

You know what the best thing about the insurance cover is? It comes with your credit card and the premiums for these covers are prepaid by your card issuer. As a cardholder you don't have to pay any additional premiums while enjoying the coverage offered. The most popular type of insurance coverage provided by a credit card is personal accident insurance. To find a complete list of the benefits and services offered by the card all you need to do is go through the services guide that comes along with your credit card or you can simply check the website of the card issuers. 

There are many types of insurance covers you can avail against your credit card : 

Personal accidental Insurance

Travel Insurance 

Vehicle Insurance 

Insurance against theft and fraudulent transaction 

Purchase Protection Insurance 

What are the Insurance benefits you can avail with your credit card? 

If you didn’t know about this, you are going to be surprised : 

Credit Insurance 

Believe it or not, there are Credit cards which offer you credit insurance! Yes, and they earn you a waiver of the outstanding credit card bill payments in case there is an accidental death of the cardholder. One can get outstanding bills up to INR 50,000 waived under this insurance plan. In order to avail this coverage, nominees of the cardholder have to provide a death certificate. 

In the event of the death of the cardholder, the spouse, children, and other family members of the cardholder are paid the outstanding balance by the insurance company so that they are not affected by the outstanding payments.

Personal Accident Insurance 

Most of the credit card companies and banks offer this benefit/feature when they offer you a credit card. In case the cardholder has met with an unfortunate accident which has caused his death, then the nominee can claim personal accident coverage. The coverage amount may range from INR2 lakhs to INR40 lakhs, depending on the type of card the cardholder had earlier opted for. 

Also Read - How Do Late Payments Come Back To Bite You?

Lost Baggage Insurance 

Did you know that your credit card offers you protection against loss of checked in luggage? You can call your credit card company and ask If your card offers this coverage, if yes, then you can claim the benefits in an event of theft or loss of checked baggage on both domestic and international flights. 

Purchase Protection Insurance 

Most card companies offer credit cards which have purchase protection coverage on them. You know what this means? It means that If this coverage is available on your credit card, any product that you purchase using the card will be insured against loss or damaged due to theft and fire for 180 days from the date of purchase.

There are numerous other additional features and benefits available on your credit card like loss of passport, hijack coverage and zero lost credit card liability. 

Zero liability

This feature is important because then you as a cardholder are not responsible for any purchases made using the card, after you report the loss of the card. However, you also have to remember that you are liable for all expenses incurred on the card before you have reported the loss. Hence, it is always suggested by the banks that you inform a loss of card on the Visa/MasterCard emergency assistance lines immediately after you realize it.


Top 10 credit cards in India 2021 offering Personal Accident Insurance Cover

Credit Card

Sum Assured

ICICI Bank Diamant Credit Card

INR 3 crores ( For accidents)

HDFC Bank Credit Card

5 times of the available credit card limit ( up to a maximum of INR 50 lakhs)

Axis Bank Privilege Credit card

INR 2.5 crores

Citi Prestige Credit Card

INR 5 crores

Canara Bank Credit Cards ( Visa and Mastercard )

INR 2 lakhs to INR 4 lakhs

Etihad Guest Premier Card from SBI

INR 50 lakhs

Canara Bank Credit Card (Global Gold)

INR 4 lakhs to INR 8 lakhs

Vistara Signature Axis Bank Credit Card

INR 2.5 crores

MoneyBack Credit Card from HDFC Bank

INR 50 lakhs

ICICI Bank Rubyx Credit Card

INR 3 crores (For air accidents )

Conclusion 

The features and benefits on this card depends on the type of credit card you own. So, the type of card you have will define the kind of insurance benefits you can avail on it. The point is that because Credit cards mostly offer personal accidental benefits, it is particularly important that you treat life insurance and term insurance separately and give it equal importance. It is always recommended that you solely do not depend on an insurance cover provided by your credit card. 


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