Thanks to the surge in digital payments, something like an e-wallet insurance has taken birth. Paytm has introduced an insurance cover to protect wallet users money against fraudulent use in cases of theft or unauthorized access. The insurance cover for the wallet is available to users at no additional cost. Also Read - How to book COVID-19 vaccine slot via Paytm App, get Covaxin and Covishield shots with these simple stepsAlso Read - Alert! Paytm cashback scam: Fake Paytm website, it's a trick to steal your money
Currently, Paytm allows users to store up to Rs 100,000 (Full KYC account) at any point of time. With such a significant amount of money held up in a mobile-based app, it raises questions on the security of the virtual app. Although Paytm has its own security checks and measures in place, in adverse situations such as device theft or loss, the insurance cover will help users claim their lost money easily through a refund. Here s how the scheme works. Also Read - 5 apps helping people get through the COVID-19 second wave: Twitter, CoWIN, Aarogya Setu
All customers and merchants will be insured to a limit of Rs 20,000 or their wallet balance, whichever is lower. In case of loss or theft, users will be required to report the loss immediately through paytm.com/care or by calling Paytm s Customer Care number within 12 hours. To claim the insurance in case of device theft, once you bring the loss to Paytm s notice, you will be required to lodge an FIR about the loss of device with the police and share the proof with Paytm within 24 hours of the loss. ALSO READ: Paytm rolls back 2% fee on recharge via credit cards after user backlash
Paytm will initially block your wallet once it receives your loss report. Once the claim is validated, Paytm will initiate the settlement within five working days. Additionally, it will also restore your access to the wallet once credentials have been changed. As Paytm notes, once your wallet is blocked, you can use it on the same device or any other only after it has been unblocked by Paytm, and a new password is provided.
In cases of unauthorized transaction, you will be required to follow the same procedure of informing Paytm within the first 12 hours of the fraudulent transaction, after which Paytm will block the wallet. Once the claim is found to be genuine, Paytm will ensure the settlement is done within five working days along with restoring your wallet account. ALSO READ: Paytm launches new e-commerce platform Paytm Mall
It is worth mentioning that for any insurance claims, the incident of loss or theft must be reported within 12 hours else there will not be any settlement. Also, if you are one of those unlucky, forgetful ones who keep losing their devices then Paytm clearly states that only one incident of claim is applicable per user within a period of 12 months.
There are certain incidents which are excluded from the scheme such as any loss occurred due to a user s negligence, or any fraud due to misuse of credit card or bank account information through the Paytm platform. Ironically, Paytm is also excluding the instance of loss which is caused through upgrading or adopting new features released for the app.
Launched in 2010, Paytm boasts over 200 million users and 5 million merchants. The mobile payments service is on its way to introduce its own Payments Bank by the end of this month. Last week, the Alibaba-backed company went global by introducing its bill payments service in Canada.
Image courtesy: Paytm Blog