Drawbacks of Card Protection Plan

Card protection plan may sound good if you listen to it without inner intuition but if you sit down a while and think about the benefits it offers, your comment about the plan will be 'Absurd'. Let us discuss the drawbacks,

Ease of contact
A report about the card loss to a single number (CPP customer service) may sound good but when you think about the possibility of carrying more than two cards with you at a time, you will say that it is a rare incident because no sensible person will be carrying more than two cards with him when he goes out. So even if he loose the card he will be calling just two banks to report the card loss and this is not a tedious process. Still if you insist about carrying more than two cards then you can be sure that the Third card if lost will not get the full compensation if your all three cards had been misused each up to forty thousand. So carrying more than two cards is dangerous even if you are a member of Card protection plan. Thus this 'single point contact' benefit becomes invalid.

Compensation For Fraud:
The real benefit of the card protection plan is the 'Pre-notification benefit' that is the compensation for fraudulent transaction if any that happens before the report of card loss to the CPP but again if your card loss is more than two or your credit limit is more than Forty thousand then this plan wont work for you since the total coverage is up to One lac rupees and the maximum amount a card can fetch as compensation is Forty thousand rupees only. Here again the fraudulent transactions without involving PIN (Personal Identification Number) number alone is covered. This means online card fraud, Debit card fraud (ATM fraud) will not be covered.

In post notification online fraudulent transactions is covered but what is the point? Once the card holder reports the card loss the card holder is not liable for the fraudulent transactions whatever it may be. This is what the bank assures and this compensation up to Twenty lac rupees after the report of card loss is just an EYE WASH.

Assistances:
Hotel assistance, Travel ticket assistance and Emergency Cash assistance is just another way to lure the people because instead of calling CPP and waiting for an unknown executive from 2 to 24 hours one can straight away go to the bank and fill the cash withdrawal slip and get enough cash to proceed further instead of getting assistance and paying it back after the card loss. The other benefits like helping to get a new card are again just 'Eye Wash'. Once again these hotel, travel ticket assistance may not be given to you in full as stated and it is subject to 'status' and this term 'status' itself has more than enough meaning in it. The discussion of the drawbacks of the card protection plan is a brain work of the authors and if the readers find any faults in the explanations your suggestions are welcome.