Tuesday, June 17, 2008

StanChart offers unique risk cover for lost credit card

In case you loose credit card then it adds up to your worries especially fraudulent purchases. Now if you are StanChart credit cardholder then there is a good news for you.

Standard Chartered Bank has signed an agreement with Tata AIG General Insurance Company Ltd to provide a risk cover the Plus Extended Protection Plan for lost cards that will protect customers against fraudulent transactions. This is first of its kind service being offered by the bank in the domestic credit card industry.

This risk cover for lost cards will bring big relief for the cardholders who are already burdened with high interest rates. Under the risk cover lost cards will now be insured against any misuse, the insurance cover will be valid for any fraudulent transaction on a card up to 12 hours prior to the customer reporting the loss.

Stanchart Chartered’s general manager (credit cards and personal loans), R. L. Prasad, said in a statement, “We receive several reports of lost cards in a month. The product will ensure protection to our valued customers against any fraudulent use.”

Standard Chartered Bank, which contends against aggressive players such as ICICI Bank, Citibank, the State Bank of India and ICICI Bank in the credit card segment, hopes that this move will help it to reach out to people who are reluctant to apply for credit cards because of risks.

Gaurav D. Garg, managing director of Tata AIG General Insurance Company Ltd, said, “People are moving away from conventional modes of payment and a large number are opting for cards. This product seeks to encourage the confidence of the people who use credit cards.”

Standard Chartered said under this cover in the event of fraud, customers will receive a reimbursement up to Rs 50,000 per occurrence. The plan also covers ATM assault and robbery insurance, lost wallet protection, purchase protection and home protection.

At present Standard Chartered has 90 branches in 33 cities in the country and has a combined customer-base of around 21 lakh. In the recent times the credit card base in India has expanded as banks have turned aggressive and the plastic culture spread among individuals.

According to recent figures available the total outstanding in India stands at over Rs 19,000 crore. As per Reserve Bank of India data, there are 2.6 crore credit card users in India with ICICI Bank being the market leader.

Most of the credit card companies offer insurance, in the form of a “credit shield” where part of an individual’s outstanding is paid if the cardholder dies or is permanently disabled.

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