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Products that have insurance built in

Products that have insurance built in

We often forget that products we’ve bought have an insurance policy built into the cost price. Did you know that your fixed deposits, gas cylinders and credit cards are insured?

The fine print isn’t something we bother to look at. If you got what you paid for, then the instruction manual goes directly in the trash. But failing to read it can cause you to miss out on crucial details. One of them, for example, is that your purchase may be insured in case of an accident or theft. This may even be the case with items you have purchased with your credit card. Here are five products you may not know are insured.

Gas cylinders:
Liquefied petroleum gas (LPG) cylinders are always insured. So in case of an accident causing loss to life or property, an amount would be paid out by the insurance company. The Hindustan Petroleum Corporation website, for example, says, ‘All registered HP gas consumers are insured against the outcome of an accident at their registered premises due to LPG. Details are available with all the distributors and the customer service cell. HPCL has also taken a public liability insurance policy.’ A maximum of Rs40 lakh can be paid out.

Bank deposits:
In the very unlikely situation that the bank you have a fixed deposit with goes under, your fixed deposit may be covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) for up to Rs1 lakh. This is at no upfront cost to you. So long as the bank had paid the premium to the DICGC, you will receive the money. As trust in the banking system is so integral to the economy, there have been instances wherein the government has paid out money to depositors even when the bank has failed to pay the premium.

Credit and debit cards:
Offered by a few banks, particularly to their high-end customers, these cards cover you for fraudulent transactions even before you reported the theft/loss. In case of a credit card, you would not be charged; with debit cards, the amount would be restored to your account. In the table below, you can find out some of the card companies providing this facility:

Card issuer Cards Type Coverage
HDFC Bank All cards Debit Fraudulent transactions of up to Rs1 lakh 30 days prior to filing of report
ICICI Bank Privilege customers and higher Debit Fraudulent transactions 15 days prior to filing of report
State Bank of India Platinum cards Credit Fraudulent transactions of up to Rs1 lakh 48 hours prior to filing of report
Yes Bank International cards Debit Fraudulent transactions of up to Rs25,000 7 days prior to filing of report

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