Insurance on credit cards comes in the form of embedded coverages, benefits automatically bundled with your card that most users overlook. These are not optional add-ons or extras you need to buy separately. They’re built into your card benefits and can offer real financial protection when activated.
Depending on your bank and card network like Visa, Mastercard, or Rupay, the types of insurance included may vary. Some benefits activate automatically, while others require you to meet certain conditions, such as using the card for a recent purchase.
For example, some cards include purchase protection, lost card liability, or air accident insurance when you book tickets. These benefits help you avoid out-of-pocket expenses during emergencies.
Uncover insurances embedded in your card on the CoverSure app. Click here to quickly check if your card has insurance.
Common Types of Insurance Available on Credit Cards
Most credit cards in India come with built-in protections you might not realize you already have.
Personal Accident Insurance
This insurance on credit cards provides financial support if you suffer an accidental death or permanent disability. The coverage limit depends on your card type and issuing bank. Some premium cards offer higher sums insured, especially if you use the card regularly.
Purchase Protection
Purchase protection reimburses you if items bought with your card are damaged or stolen within a set period, often 30 to 90 days.
Example Scenario:
You buy a new smartphone with your credit card, and it’s stolen two weeks later. With purchase protection, you can file a claim and get back the amount you spent, reducing your financial loss.
Lost Card Liability
If your card is stolen or misplaced, this cover protects you from unauthorized transactions made before you report the loss.
Travel Insurance
Some cards include travel insurance on credit cards, covering trip cancellations, delays, lost luggage, and medical insurance during international travel.
Air Accident Insurance
Frequent flyers often benefit from extra air accident cover. This insurance provides compensation if an air accident causes serious injury or death while traveling on tickets booked with your card.
These types of insurance can make your credit card a powerful tool for financial protection, not just spending.
Want to know exactly what your card includes and what’s active?
Use the CoverSure App to check embedded insurance benefits like fraud protection, health insurance coverage based on your card type.
Additional Covers You Might Find
Along with standard protections, some credit cards include extra insurance on credit cards that can cover very specific situations. Here are a few less common but valuable options to look for:
Credit Shield Insurance
If you lose your job, become disabled, or face other major setbacks, credit shield insurance on credit cards can help pay off your outstanding dues. This prevents your credit card debt from turning into a bigger problem during hard times.
Baggage Delay or Loss Insurance
When you travel, this cover reimburses you for the cost of essentials if your luggage is delayed or lost. It complements other types of insurance you might have, like standard travel insurance or medical insurance, to reduce unexpected expenses on trips.
Professional Indemnity Insurance
Some premium cards offer limited professional indemnity insurance. If you use your credit card for work-related purchases or expenses, this coverage protects you against claims related to professional errors or omissions.
These additional benefits show that the insurance on the credit card you hold can go well beyond everyday protections. Always check your card’s terms to see exactly which types of insurance are included.
Final Thoughts
Insurance on cards is often overlooked, but it acts as a built-in safety net every time you swipe or tap. Whether it’s covering damaged purchases, protecting against unauthorized charges, or providing travel support, these features can help you avoid unexpected expenses and hassle.
Even if you already have health insurance or other types of insurance, your credit card can add an extra layer of security.If you’re not sure what insurance on the credit card you already have, you can quickly check your coverage details here: Coversure Insurance on credit or debit card feature. It only takes a few minutes to see which benefits apply to your cards.
