Want insurance? Your credit card also offers this for free

Credit cards offer many benefits ranging from a free credit period to reward points. There is one more benefit that your card might have. Do you know some insurance benefits are linked to credit and debit cards? Probably not, as many of us do not read the fine print or check the welcome email and pamphlets given at the time of recieving the card.

“Around 75% of all credit cards and 60% of all debit cards come with some insurance benefits linked to it. Awareness is very poor about such benefits. A data point from our research shows that out of 450 UX research calls we have done at BimaPe, 97% mentioned they first heard about the insurance benefits on their cards via our ‘Know Your Card – Insurance’ tool,” said Rahul Mathur, founder of Mumbai-based Insurtech startup BimePe, which helps you to discover hidden insurance benefits.

There are many types of covers offered along with cards such as zero lost card liability, air accident cover, travel insurance (covering baggage loss), personal accident policies, misplaced travel documents, among others. Interestingly, there is no additional cost, as generally the annual charge linked to credit cards and minimum account balance requirements for debit cards factor in the insurance cost.

How to know about insurance on your card?

Considering that a large number of cards come with free in-built insurance it is important to know if your card offers one. For a new card always check the welcome email and pamphlet given to you when you get the card. “For an older card, you can visit the card issuers website. You may have to dig quite a bit to find this information. Sometimes, you may need to call your card issuer to get these details,” said Mathur. BimaPe also offers a “Know Your Card” tool that helps you discover free insurance benefits on your debit and credit cards.

How to claim?

The claim process depends on the type of insurance you want to claim. The claim process is similar if you have bought an insurance product through your bank or an insurer. You need to get in touch with the customer care who will provide you all details. You can settle the claim online without going through the hassle of submitting physical documents.