What is purchase protection all about?
Suppose you buy a phone using your credit card and a week later, the phone somehow gets stolen. Purchase protection facility on your credit card will let you make a claim. The facility of Purchase Protection basically protects your credit card purchases from accidental damage and theft. The kind of protection you are provided depends on the credit card you use. While some of the plans are comprehensive, there are many that provide basic protection.
For instance, MasterCard holders get complimentary coverage up to RM1,500 if they make a claim within 30 days from the date of purchase of the product whereas American Express Platinum Cards provides cover of up to RM15,000 on each item if the cardholder makes a claim within 90 days of the date of purchase.
Does every credit card have Purchase Protection?
No! Not all the credit cards available in the market have this facility. Only some of them come with a complimentary purchase protection plan. A few of them offer variations of this plan although you must check the fine print on the credit agreement.
However, generally basic credit cards might not offer complimentary purchase protection plan. It depends on the issuer and the provider. Platinum, gold, and other such premium level of credit cards offer some kind of protection in which the coverage amount might be higher for upper level cards.
Will you get a coverage for every item you purchase?
No! The range of items falling under Purchase Protection varies from card to card. As a matter of fact, precious or rare coins, collectibles, jewellery, art and bicycles are not covered by almost all the Purchase Protection agreements. Moreover, Purchase Protection is not generally provided on the following category of items also:
- Perishable or consumable
- Items destroyed by customs
- Items that have been stolen from unattended vehicles
- Items already covered by insurance
Important points about Purchase Protection
You must activate your coverage. While some protection plans are automatic, there are many that demand registration. In case your card’s plan is not activated, you will not be allowed to make a claim if the item you purchased gets damaged or stolen. So, once you find out about the Purchase protection plan on your credit card, get it activated with the help of the bank.
In order to make a claim, you will be asked to fill up a form and submit it with documents like a photograph of the damaged product, purchase receipt, and a copy of the police complaint attached with it.
Since most cards have a cutoff date, it is advisable to make a claim as soon as possible.
Author Bio: I am Damia Zara an avid reader and a prolific writer. An Investment Banker by profession and a writer by passion. I am crazy about playing outdoor games and X-box.