Your card purchases are insured for damages and theft
If you’ve purchased goods using a credit or debit card, you may not need to get additional insurance on them; they are covered under something called purchase protection insurance.
Has your washing machine, purchased last month through a card swipe, picked up some damage? Has that diamond ring you gifted your wife been stolen? If you have been cursing yourself for not buying home insurance, check your card bill for the purchase date.
The deal: Protection for 30 or 90 days
Banks offer a “Purchase Protection Insurance” cover on credit and debit cards. So, if damage occurs during transportation to your home, or there is theft or damage due to a fire, you can lodge a claim for items damaged or stolen within 90 days of purchase using a card.
ICICI Bank offers this cover for goods bought through its debit cards, while Standard Chartered Bank insures card purchases through Extended Protection Plan. Banks such as Axis Bank offer the cover on limited cards such as Infinite and Signature Cards. This Purchase Protection cover is offered apart from the Personal Accident Cover and Credit Shield insurance that credit and debit cards offer for free or at a nominal fee. Check with your bank to know more about this type of cover.
Most banks insure tangible goods for 90 days from the date of purchase, but banks such as Indian Overseas Bank limit the cover to 30 days from the date of purchase. The cover limit depends on your card and varies from Rs25,000 to Rs5 lakh per annum.
The catch? Your card must be active during this cover period
For the insurance cover to be valid, you will have to make sure your card is active. So, if there have been no transactions on your card in the past 30-90 days (depending on the issuer) then the card is considered inactive. Banks set a minimum spend limit too – for instance, ICICI Bank mandates that you spend Rs499 in the past month for the card to be considered active. Additionally, if you have defaulted on your card bill payment the insurance claim won’t be acceptable.
In order to claim damages for robbery, the product purchased must have been stolen from your address specified to the bank. So make sure your current address is registered with the bank.