Credit Cards: Complimentary covers for Premium Cards
If you get stranded at the New York airport for more than 12 hours, you can do more than let out a series of expletives. If you have a high-end credit card from the Standard Chartered Bank , you could possibly earn Rs 13,500 as it insures flight delays of over 12 hours.
In fact, most premium cards come with complimentary insurance covers, which offer covers against any eventuality while travelling, such as accident, loss of passport and online frauds. The cover varies from Rs 9,000 to Rs 3 crore, depending on the feature and the card. For instance, if you fall ill while travelling abroad, an American Express Platinum credit card can take care of your medical bills up to Rs 22.5 lakh, while ICICI Bank Platinum Identity Credit Card has an in-built air accident life cover of Rs 1 crore.
Most premium cards have a joining fee of Rs 2,000-5,000, though for some it can go up to Rs 30,000. This may be waived during promotional offers. The annual fee for these cards usually ranges from Rs 2,000-10,000. However, several companies waive it for the first year, especially if your spending has been above a certain limit during the year, say, above Rs 5 lakh.
In case your credit card gets stolen, you can avail of the card protection cover. A call to the customer care may be enough to ease your worries as this cover offers protection against fraudulent charges swiped on the lost or stolen card up to 12 hours before the loss is reported. To avail of the other covers, the process might take longer because you will need to submit various documents to support the claim, such as a copy of the FIR in case of baggage loss, death certificate or flight tickets.
Though insurers try to settle the claims in a period ranging from a week to a month, in some cases it can take up to three months. “This is because most people don’t preserve the documents, turning the claim process into an ordeal,” says Shyamal Saxena, head of retail banking products at Standard Chartered Bank.
However, before paying a high fee for these premium cards, go through the terms and conditions carefully as there are several caveats. When Rajesh Sahani’s baggage was delayed at the Delhi airport after he returned from Paris, he made a claim to avail of the cover for delayed luggage. However, it was rejected. The reason: though the cover covered international travel, it was valid only for outbound flights. So, he could have filed a claim only if the baggage had been delayed in Paris.
While insurance shouldn’t be the sole reason for buying these cards, it can be an added benefit, especially if you travel frequently. Amar Pandit, CEO of My Financial Advisor, says, “This should not be your primary insurance vehicle. However, it can come in handy by boosting the total life or accident cover. If your card has a high credit limit, a card protection cover for theft or misuse is of paramount importance.”
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