The benefits and features offered by credit card are many and insurance cover is one of them. However many of the card users are unaware of the conditions under which they operate. When you buy a card, you get different types of insurance at the same time, some of them at an additional cost and others as part of the card services included in the annual fee.

In many cases, insurance benefits are included as part of the basic features such as travel cards that highlight protection abroad. In others, the benefits and conditions for validating the insurance are found in the contract, however, customers do not pay due attention to them. This causes the conditions to be unknown and in many cases a benefit that is already part of the credit card is missed.

What types of credit card insurance are there?

Each credit card offers different insurance policy. This depends on the profile of each user and the needs they consider indispensable for this. The insurance cover typically appearing with credit cards are as follows.

• Insurance against theft, loss or cloning of cards: Prevents the cardholder from paying unrealized charges for any of the above reasons. At the same time it protects against misuse of banking information.
• ATM Theft Protection: Covers losses around the ATM, before, during, or after a transaction.
• Protected purchase insurance: It is used for purchase of long-life items. It covers the loss of products purchased with the card.
• Travel medical and accident insurance: Protects the cardholder, spouse and minor children from unforeseen events that may arise while they are out of the country.
• Baggage loss or delay insurance: Luggage cover for flights paid for with the card.
• Car rental insurance: It works when card user is travelling and is applicable when the car rental was paid for with the card.

Depending on the type of card you have, it will be the insurance coverage you have. As an example, classic cards often offer services that protect the customer from theft or loss, while travel cards focus more on services outside the country. If you are not sure what your card includes, contact your bank.

How to make credit card insurance valid?

Each bank/card issuer establishes the conditions under which it will make the insurance valid. It is important to be clear about the requirements for applying. It is frequent that the client wants to make his insurance effective but does not know the mechanisms to make it effective.

The reasons for this are as follows:

No compliance with documentation

To make insurance valid, the bank sets conditions. Among them are the documents that allow validating the application of the insurance. If the documents are not in order, the petition does not proceed and the benefit is lost.

Unaware of the procedures

This can be from the way it should be requested or the frequency with which it is allowed to be used. In many cases the insurance works on limited occasions and if the user requests it more than once it will be rejected. Also, if any steps in the process is skipped there is a higher chance of losing the right.

Not Claiming Before the Time Limit

Many insurances give you a time limit to claim the benefits. This is the most commonly the case with death insurance that has a limit from the date of death of the user. And if the beneficiaries are unaware of the existence such insurance cover which is part of the card, then there could be delay in applying for the benefit and the application may get rejected.

In order to validate credit card insurance, it is important that you are clear about the benefits it offers, as well as the application process. Carefully review the conditions mentioned in the contract and if you have any questions contact your bank.

Finally, it is your right to take advantage of insurance that is part of your credit card.