May 21, 2025 · 10 mins read
Santosh Kumar
Credit Card Protection Plan acts as an insurance plan for credit cards, debit cards, retail, and membership and retail cards, in case of theft, loss, or fraud on the cards. It requires the cardholder to pay a fixed yearly fee to use the service. In India, this service is provided by two service providers - Credit Protection Plan (CPP) and OneAssist. They offer various card protection plans for different cards based on information such as credit limits etc.
Single Insurance Plan: Credit Card Protection services are single insurance plans that offers coverage for more than one card, be it credit card, debit card, PAN card or Driver's License. Economical and One-time Premium: CPP service providers require cardholders to pay a minimal premium yearly for subscribing to the service. The annual premiums for these services are as low as Rs . 899.
Easy Blocking: For subscribing to the plan, all you need to do is register your card's details. Once registered, in case of theft or loss of card, all you are required to do is call the service provider and all your cards linked to the plan are blocked. You do not have to go through the herculean task of calling each bank, asking to block the cards, in case of loss of multiple cards.
Card Replacement Assistance: The card protection plan also assists in replacing misplaced cards.
Quick Card Cancellation: The CPP service provider connects with the concerned banks of your credit and debit cards in order to initiate an immediate process of cancellation of your misplaced cards. The expenses incurred in unauthorized transactions in case of stolen cards are also paid for, by the CPP service provider.
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Emergency Financial Assistance: If you lost your credit card or debit card, or any other card overseas, CPP services offer an emergency cash advance for settling unpaid hotel bills or arranging travel tickets. If you are within the country, emergency assistance from the CPP service provider reaches the cardholder within 24 hours, while if on a trip abroad, it takes about 48 hours to get help. There is no interest charged on the emergency cash advance provided you are under this plan. However, you are required to repay the amount in full within 28 days.
PAN Card Replacement for Free: You are also eligible for a fraud protection feature under the CPP, where your PAN Card is also protected against loss, theft, fraudulent online use, etc. In this case, the CPP service provider ensures your PAN card is replaced when lost, within the shortest time span. There is no charge for this replacement as it is done by the CPP provider on your behalf.
Subscribing for a CPP is very easy; it usually involves the following steps:
1: Fill an application form for the chosen card protection plan. Application forms are available online on the service provider's or banks registered website.
2: Pay the premium amount as per your card and as offered by the service provider. Generally, the premium is required to be paid in full and at the beginning of the plan.
3: Once the service provider receives the premium amount, a welcome pack is sent to the cardholder. The welcome pack comprises of a registration form, confirmation letter as well as terms and conditions of the membership.
4: Cardholder should register each card that is under the protection plan by giving all the details of the cards and sending it back to the CPP provider.
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Opting for a CPP is a great idea, provided you are sure it will benefit you. Some of the points to look out for when applying for a credit card protection are:
1: While selecting the card protection plan, ensure you know the list of banks that are tied up with the providers.
2: Find out about all the plans being offered, as each CPP may differ depending on the bank as well as your card.
3: Find out the maximum damage loss that you will incur against the plan you are choosing.
4: Also, know the maximum reimbursement that can be availed on your plan.
If you find yourself facing financial hardship due to loss of employment or a disability, protection insurance can offer you a break from your payment obligation, which can help you avoid some of the very serious consequences of missing payments. And in the unfortunate event of your passing, your credit card balance will be cleared. These can be very valuable benefits if you’re short on savings and dealing with long-term financial hardship.
Your protection insurance fee will be incurred monthly. The cost generally depends on your monthly spending; the more you spend, the higher your fee. This cost can add up over time, so it's important to consider whether you're willing to pay.
But while a credit card protection insurance policy can offer a great deal of protection, it isn’t the only option on the table. Especially if you’re facing financial difficulties, you may have more success by reaching out to your credit card issuer directly for assistance. Card issuers are stepping in to help support customers with assistance plans that won’t come at any extra charge to you.
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1: Financial protection during times of sudden unemployment, injury, or medical disability Accounts may be reported as current to credit bureaus despite missed payments, protecting your credit score.
2: Your inability to make payments won't result in exponential balance growth as interest compounds, since your interest charges may be suspended.
3: In the event of your passing, your balance will be wiped out, leaving no financial burden for loved ones to repay
1: Protection is not free and will add to your monthly payments
2: Purchases made after the claim are not covered and must still be paid for
3: Cards are insured individually, meaning an added cost for each card you wish to insure
4: Not all emergencies you experience may be covered
5: The more you use your credit card, the more you’ll pay in fees
6: Coverage doesn’t offer assistance for long-term hardship lasting more than two years
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First, consider your finances, especially your savings. For example, if you have enough savings to cover expenses in the event of an emergency, this protection insurance may not be necessary. Your current debt balance may also be a deciding factor. If you have a large amount of debt that you’re working to pay down, it may not be a bad idea to have credit card protection insurance. In case of emergency, it would allow you to suspend your credit card payments for a time and prioritise debt that can’t be suspended.
Other factors to consider may include your lifestyle, health, and job security. If you have an extreme hobby or work in a high-risk field where you may be prone to illness or injury, having credit card protection insurance could be a great help. This is also true if your job has a high turnover.
Just be sure to read the coverage agreement carefully before signing off on any insurance plan to make sure that you’ll be covered for your specific needs.
While there are credit card protection insurance plans out there that can be a great support for people in financial need, there are also third-party providers out there charging for coverage that isn’t helpful at all.
These third parties may present fake policies that claim to cover fraud and protect your information, but they can result in you losing money or even access to your credit card account altogether. They may even claim to be contacting you from your card issuer; if someone calls you under this pretence, do not share your personal or credit card information.
Do your research on any company offering you protection against fraud or hacking. If you are interested in a particular service from your card issuer, including credit card protection insurance, you can contact your issuer directly. And always read the fine print of any agreement to ensure you know exactly what you’re signing up for.
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While there are certain standard protections available with every credit card, such as $0 liability for fraudulent purchases, additional benefits and protections apply for certain cards. These benefits are meant to specifically offer protections for the purchases you make and come at no extra cost to you.
Fraud protection: All credit card issuers offer fraud protection, which comes with a zero-liability guarantee. Any fraudulent charges reported in a timely fashion by the cardholder will not be the cardholder’s responsibility. However, it’s important to understand the fine print for your card issuer’s fraud protection policy to know how you should deal with fraudulent charges.
Price protection: This is a less-common protection that allows you to file a claim on a purchase that you’ve made but later found at a lower price. Your card issuer will refund you the difference. There are usually restrictions on these refunds, such as the amount refunded, the time since your original purchase or the number of claims you can make annually.
Purchase protection: Purchase protection covers loss, damage or theft of an item. The time frame for reporting is usually 90 days after purchase. Depending on the card company, your item will be replaced, repaired or reimbursed. It’s also important to read the fine print on your card agreement since not all purchases are covered.
Travel insurance: To leverage this benefit, you must pay for your travel using your credit card. Travel insurance policies vary greatly from card to card, so it's important to read your card agreement to know exactly what is covered. Most commonly, travel insurance covers trip cancellation and lost or damaged luggage.
Rental car insurance: If your rewards card offers this benefit, it will apply when you use your credit card to pay for the full rental agreement for a rental car in your name. Usually, credit card rental car insurance is secondary insurance, though some issuers offer primary insurance. Again, read the fine print of your credit card agreement to know exactly what is covered.
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No, it is not mandatory to opt for the credit card protection insurance.
Yes, you will need to pay a premium in case you opt for the credit card protection plan.
Yes, the Card Protection Plan can be cancelled by calling the customer care of the bank. However, you must call the customer care from the registered mobile number.
In case you have opted for CPP with State Bank of India, the contact numbers are mentioned: 1800 419 4000 (toll-free) and 6000-4000 (the city code must be entered before 6000)
Yes, the emergency travel assistance must be repaid within 28 days.
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