Credit Card Insurance Benefits Explained
Air accident cover, lost-card liability, purchase protection and travel cover on Indian credit cards — what is usually included, the conditions attached, and how to claim.
Updated 29 September 2026 · 107 cards from 17 issuers trackedWhat you need to know
Many credit cards come with complimentary insurance bundled by the issuer through a group policy with an insurance company. The common covers are air accident insurance, lost-card liability cover, purchase protection and, on premium cards, travel covers such as baggage delay or loss of passport. These covers are almost always conditional — for instance, air accident cover usually applies only if the ticket was bought with that card — and many issuers have reduced or withdrawn complimentary covers in recent years.
- The insurer, not the bank, pays the claim; the card’s benefits guide or MITC names the insurer and the policy terms.
- Claims must be intimated within the time the policy allows, with supporting documents — late intimation is a common reason for rejection.
- Complimentary cover is not a substitute for your own term life, health or travel insurance.
Common covers on credit cards
| Cover | What it pays for | Typical conditions |
|---|---|---|
| Air accident cover | Death due to an air accident | Ticket usually must be bought with the card; card must be active; nominee should be registered |
| Lost card liability | Fraudulent transactions before you report a lost or stolen card, within a set window | Report and block promptly; may need a police report |
| Purchase protection | Theft or damage of items bought with the card, for a limited period after purchase | Proof of purchase on the card; exclusions for cash, jewellery, perishables etc. |
| Travel covers (premium cards) | Baggage delay or loss, loss of passport, missed connections, overseas medical on some cards | Travel booked on the card; limits and deductibles apply |
| Credit shield | Outstanding card balance on death of the cardholder, up to a limit | Offered on some cards; often a paid add-on |
Conditions that decide whether you get paid
- Card usage: many covers require the ticket or item to be paid for with that card, and some require the card to have been used within a recent period.
- Timely intimation: inform the issuer/insurer within the period stated in the policy terms, and submit documents within the claim window.
- Nominee details: update your nominee with the issuer — without it, claims on death can be delayed.
- Exclusions: pre-existing conditions, cash withdrawals, fraud caused by sharing OTP/PIN, and items left unattended are commonly excluded.
- Changes: issuers can withdraw or change complimentary covers with notice; check the current benefits page rather than the welcome kit.
How to make a claim
- Inform the issuer immediatelyCall customer care and ask for the insurance claim process and the insurer’s contact.
- Get the documents togetherCard statement showing the purchase, tickets or invoices, police report (theft/loss), airline report (baggage), death certificate and nominee KYC (air accident).
- Submit the claim form within the windowKeep copies and the claim reference number.
- Escalate if rejected unfairlyUse the insurer’s grievance cell, then the Insurance Ombudsman (Bima Bharosa portal). For card-related disputes with the bank, the RBI Integrated Ombudsman.
Your protection by law — separate from insurance
- RBI circular ’Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions’, RBI/2017-18/15, DBR.No.Leg.BC.78/09.07.005/2017-18, dated 6 Jul 2017.
- Zero liability: (a) bank’s contributory fraud/negligence/deficiency, regardless of reporting; (b) third-party breach where customer notifies within 3 working days.
- Limited liability (third-party breach reported in 4–7 working days): lower of transaction value or cap — BSBD ₹5,000; savings/PPI/gift cards/small MSME ₹10,000; credit cards with limit up to ₹5 lakh and large business accounts ₹25,000.
- Reported beyond 7 working days: liability per bank’s board-approved policy.
- Shadow credit of disputed amount within 10 working days of notification; complaint resolved within 90 days; burden of proving customer liability lies on the bank.
Frequently asked questions
Do all credit cards come with insurance?
No. Many entry-level cards have no insurance, and several issuers have removed complimentary air accident cover from cards since 2024. Check your card’s current benefits page.
Is air accident cover valid if I booked the ticket with another card?
Usually not. Most policies require the ticket to have been purchased with the card that carries the cover.
What is lost card liability cover?
It reimburses fraudulent transactions made on a lost or stolen card during a specified period before you reported it. RBI’s zero-liability rules already protect you if you report unauthorised transactions within 3 working days.
Who do I claim from — the bank or the insurer?
The insurer pays. The bank facilitates and usually provides the claim form and the insurer’s details, so start with the issuer’s customer care.
Card features, fees and reward rates are compiled from issuers’ published terms and reputable card-review sites (source and date on each card page). Issuers change benefits often — confirm the latest MITC before applying.