Your credit card purchases are insured too!

Would you be calling your credit card company if your freshly-bought microwave oven, whose payment you are yet to clear in the credit card bill, turned to ashes in a building fire? Are you repenting not covering your valuables in a home insurance cover?

You needn't fret as your credit card may be covering these losses resulting from instances of fire or burglary.

ICICI Bank has been offering a Purchase Protection cover for goods bought via its debit cards. Indian Overseas Bank provides the cover for a limited period post purchase.

Standard Chartered Bank offers a cover for the purchased goods under its Plus Extended Protection Plan, while Axis Bank too offers this on its Infinite and Signature Cards.

This Purchase Protection cover is over and above the regular Personal Accident Cover, Credit Shield and Travel Insurance that is offered free or for a nominal fee with credit and debit cards.

This protection is applicable only on tangible goods. Also, the products bought would be covered only if they were bought 90 days (30 days in case of Indian Overseas Bank) prior to the theft or fire incident.

If there is accidental damage to the product while transporting it from shop to your home, then the same would be covered too. There is usually an amount limit that is mentioned in your welcome kit supplied with the cards, typically Rs 25,000 to Rs 5 lakh per annum, depending on the card.

However, to make sure you don't miss out on the benefits of Purchase Protection Cover, follow the ground rules:

• Avoid card defaults
• Clear outstanding dues on time
• During purchase swipe card on the machine that matches with your bank
• Cards that have not been used 90 days prior to the damaged purchase will not be valid
• The product purchased should have been present at the cardholder's address specified to the bank during damage

So, even though banks mention that they are not liable for faulty or damaged products purchased through their cards, the insurance covers would take care of the damage to the product after purchase through fire, burglary and in some cases terrorism attacks.