Yesterday I lost my credit card. It was definitely an embarrassing moment as shopping and life without plastic money is now beyond imagination. I asked my friend to suggest what to do in such a condition. He suggested that the first thing I should do in case of credit card loss is calling up the bank’s 24 hour call centre and deactivate the card. This should take precedence even over the helpless attempt to track the wallet in the lost trail. This is should be done on priority as very few banks in India offer protection against fraudulent use of credit cards. Of course, there may be an easy breathe if the bank insures the lost card from any misuse.

Some banks like Standard Chartered Bank, have tied up with Tata AIG General Insurance Company to launch plans such as the ‘Plus Extended Protection Plan’ . This tie up will cover the card customers from any possible fraudulent use of the cards if the loss is reported prior . Banks receive several lost card reports in a month. The insurance product will ensure protection to the customers against any fraudulent use. The insurance coverage will reimburse (up to Rs. 50,000) per fraudulent transaction up to 12 hours prior to the customer reporting the loss to the Standard Chartered Bank customer care cell. Also, the bank has extended the insurance coverage to all debit and credit cards. The ABN AMRO Bank has also started offering this insurance cover with a total coverage of Rs. 2,000-Rs. 5,000 at a monthly premium of Rs. 100.

When the credit card company doesn’t offer any protection then it holds the customer liable for any fraudulent transaction amounting due to loss. You have to report the loss of the card in the nearest branch of that bank immediately if you want to play safe. Once you communicate to the bank in telephone/writing then you continue to enjoy zero liability on the lost card. This means you don’t have pay a single penny if your credit card is stolen and has been subjected to fraudulent practices if you report the card loss on time.