Most people even in a developing country like India are not aware of the benefits of insurance. Even purchases made through your credit card can provide you with a option of purchase protection. It works as follows, if you buy items using your RBL credit card that has purchase protection, then you need not worry at all about it getting stolen or lost. This is because purchase protection is a kind of insurance that some credit cards offer as a benefit. It will give you peace of mind, especially if the purchase is an important or expensive one.
The benefits of purchase protection
If you use a credit card to make a purchase and the item turns out to be defective, you can complain to your credit card company. They in turn will take up the case to the vendor and you can get your money back, subject to some restrictions. This is basically known as disputing a charge.
Then there may be a situation when a perfectly good purchase gets ruined or is stolen or lost due to plain clumsiness or even bad luck. This is where you can make use of the purchase protection if you bought the item with a credit card that provides this benefit. However, make sure that you do not confuse purchase protection with paid-for add-ons like credit protection plans which are quite lucrative but usually are of very little use for consumers who intend to use them for payment relief in cases such as unemployment.
RBL offers purchase protection on many of its high end cards, just like other credit card companies. However, some consumers are not aware of this benefit or simply fail to benefit from it. Purchase protection can save you a lot of money in case of damage to or theft of your expensive items.
Purchase protection can be used in many situations, but the coverage depends on the particular card and the individual situation. Appropriate proofs must be presented to the bank or the lending institution about the damage or the loss
In order to get coverage through purchase protection you need to call the credit card company, fill out a claim form and submit it with documentation of the loss. The paper work involved in this procedure is like any other insurance plan, but it is totally worth it especially because it is a free of cost additional benefit which you can avail by completing few formalities
The cons of purchase protection
Here you need to bear in mind that the authority for deciding whether your purchase protection claim is approved rests with the credit card company. They will review all the circumstances and take a look at the larger picture. It may be possible that what is covered in one case may not be covered in another case.
The details of coverage vary from one card company to another, but most of them don’t cover certain items like animals, cars, boats, food and other consumable items and all kinds of tickets. Along with exclusion based on the type of item, some credit card companies may also not provide coverage for items that are lost in a particular manner. For instance, many card companies don’t cover things stolen from a car, left out in public, stolen from a gym or school due to carelessness or taken out of luggage that was not with its owner.
Hence you need to think about it again and take an informed decision regarding purchase protection plans on credit cards.
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