Many homeowners live under the impression that availing a home protection insurance policy can keep them protected from identity theft. However, that is not the case.
Home protection insurance only covers you against financial losses arising from theft and damage to your household items. These items can include cash, cheque, electronic devices, furniture, clothes, etc.
These insurance policies will not cover identity theft in case of theft of your credit card, debit card, or identity proof documents. For that, you have to avail identity theft insurance.
What is identity theft cover?
According to a research, around 97% of Indians don’t know what identity theft is. Hence, understanding this term is essential before learning about identity theft policy.
In simple terms, identity theft is the process of using someone else’s identity deliberately for fraudulent activities. It is generally of four types:
- Identity cloning – Using another individual’s information to commit crimes or for financial gain.
- Criminal identity theft – Using another individual’s identity when apprehended.
- Financial identity theft – Using another individual’s information to commit financial frauds.
- Business/commercial identity theft – Using a company’s credentials to avail credit.
Some of the other types of identity thefts include medical, child, and tax.
An identity theft insurance policy covers all the expenses that you incur when recovering your identity.
Pocket Insurance policies like the identity theft insurance cover offered by Bajaj Finserv is the product you should opt for. The scheme offers coverage of up to Rs. 1.5 Lakh.
Need for identity theft policy in India
Gemalto conducted a study on identity theft in India back in 2017 and published the same in their Breach Level Index. The organisation found that identity theft increased by 783% that year compared to the previous one. Around 3.24 million Indians fell victim to this crime in 2017. 58% of all 29 major data breaches that year were identity theft.
Hence, the need for identity theft cover is at an all-time high with the ever-expanding internet and online users.
You may also avail fraudulent charges cover to stay protected from unauthorised charges on your credit card and debit card. These charges might arise when you lose or misplace your cards. You also avail coverage on counterfeit, cloning, and skimming charges.
Features of identity theft protection covers
- Protection against obligated payments
Any unauthorised charges arising from credits or bank accounts created with your name are covered with these plans.
- Reimbursement of unpaid leaves
Identity theft protection plans also reimburse the income you have lost in unpaid leaves to contact the necessary authorities and organisations and make the corrections in your financial data.
- Coverage of legal expenses
You can avail coverage on expenses that you incur to pay attorney and court fees in various cases. These can include resolving discrepancies in your credit report arising from identity theft, contesting any criminal or civil judgement against you, defending a lawsuit against you by an organisation.
- Other expenses
Other expenses that are covered with this policy:
- Availing up to four credit reports.
- Long-distance telephone calls.
- Notarising documents.
- Re-filling application forms for bank accounts and credits that were earlier denied due to wrong information owing to identity theft.
Wallet care is another useful product offered by Bajaj Finserv. It protects you against expenses required to avail a PAN when you misplace it. The plan also enables you to block all your credit cards and debit cards with a single call, available 24×7.
Avail an identity theft insurance scheme to keep yourself protected from any unforeseen circumstances. Ensure to make the claims within the given time frame to avail the benefits. Refer to top insurance providers for the most comprehensive coverage.