Which insurances does your Plastic Hide??

credit cardAs holidaymakers and consumers we make exhaustive use of our “plastic”!  What have now become indispensable, our banking cards.

So.. would you be able to tell me what different insurances are associated to your cards?  If you can’t, then you are not alone.  According to the Association for the Defense of Users of Banks, Building Societies and Insurances (ADICAE) 90% of consumers have no idea of the extra advantages that their cards have.

In general even though these associated insurance policies are free, the banks will charge for them via a maintenance charge, even though they do not inform their clients as to the covers they give.

We advise that you study the contract that you signed when you received your cards, as you will find the information regarding these insurance policies included in the contract.  If you don’t have a copy, ask at your bank for one, and read the small print as the covers vary from bank to bank.  You need to look for the policies associated to the card, the characteristics of the policy and the cost, if there is one.

Which policies are normally included?

  • Travel Insurance:   This policy tends to cover illness and accidents, some will also include your spouse and children.  There are two types: a day to day insurance that will include injuries sustained either at work or at home; and a travel insurance covering costs of accidents suffered on public transport, as long as you have paid for this by credit card.
  • Life Insurance: This will cover the amount spent on you card at the time of death.
  • Serious Illness Insurance:  If you should have a serious illness then you may be eligible for a lump sum upfront.  This is really helpful should you need to pay for treatment.
  • Loss of or Damage to Luggage Insurance:   You will need to request a certificate from the transport company to present with this claim.
  • Insurance for Loss or Theft of your credit card:  This will cover the account for 72 hours prior to notifying the loss or theft of the card.
  • Fraud Insurance:  This covers against the duplicity of the card, and will also cover the account.
  • Insurance on Purchase of Goods:  This covers the goods purchased with the card or damages to these.  Check the minimum amount of purchase in this case and the limitation period to present the claim.

 

Collaboration between banks and insurance companies is beneficial for everyone, but on occasions they commit irregularities.  This is the case of Great Britain, where 13 banks, amongst these some of the largest in the country were fined 1.3 million pounds by the Financial Conduct Authority (FCA) for not correctly informing their clients.  Apparently they were referring their clients to an Insurance Company that provided them protection of their cards, when this insurance was already included with their own bank cards!