Dealers have the right to recover the amounts paid if it is proven that they were not aware of them
Bankers: Insurance on "cards" is optional, and the customer has the right to refuse or accept it
6 types of credit card insurance marketed with the card. Photography: Ahmed Arditi
Bankers have confirmed that credit card insurance is an optional item, and the customer has the right to refuse or accept it, and he is also entitled to recover the value of the sums he paid if it is proven that he did not know about it, or did not sign a statement indicating his acceptance.
They explained that there are six types of insurance on credit cards, which are marketed with the card, so that the customer chooses the type that suits him in exchange for a monthly deduction, noting that the practices of some sales representatives not to inform the customer, do not exempt him from the responsibility of reading the contract terms well.
The holders of credit cards, who disclosed to "Emirates Today", deduct sums of money as a security upon receipt of credit card account statements, without them having prior knowledge of them.
Insurance is not mandatory
The banking expert, Mohamed Ghazi, said that credit card insurance is not mandatory, and the customer has the right to accept or reject it.
He added: "The bank employee must inform the customer of the credit card beneficiary of the existence of a clause in the contract related to insurance, and he must explain its types and advantages, the form of benefit from it, and other details, and then finally leave the decision to the customer himself."
Ghazi explained that there are six types of insurance, which are accident, work-leaving, complete disability, and life insurance, as well as travel insurance and credit card limit insurance.
He stressed that the customer, who was not informed of the insurance details, has the right to file a complaint to recover the sums he paid, provided that this is proven.
For his part, the banking expert, Tamer Abu Bakr, agreed that credit card insurance is optional.
He said: “Usually the insurance is within the limits of 1% of the value of the facilities, or the amounts used monthly, or it is a fixed amount ranging between 30 and 70 dirhams,” stressing that the bank employee must explain all the details to the dealer.
He continued: «Sometimes there is deliberate failure to inform the customer about the insurance, to force him to sign and take the insurance, in addition to the customer being lazy in turn to read the terms of the contract well, and he signs the insurance, and then he is surprised that there is a monthly deduction in the account statement.
Abu Bakr indicated that insurance on the cards provides insurance coverage of up to 80% of the amount due on the card, in the event of leaving work, and this is good, especially in light of job instability, due to the emerging corona virus (Covid-19), pointing to the existence of a higher document. It is provided by banks, and it is independent from the card contract, according to which a monthly amount of between 100 and 200 dirhams is deducted, as agreed upon, to cover 100% of the amount due on the card, in the event that the customer leaves work, in addition to giving the insured a monthly salary of no less than 3000 dirhams for a period of three months.
Abu Bakr emphasized that many dealers prefer this type of insurance, in anticipation of any compelling circumstances in their work.
He added, "During the contract, the dealer is sometimes contacted and informed of the insurance clause, and he agrees, thinking that it is free, or for an amount ranging between 30 and 40 dirhams annually and not monthly, but he is surprised by the monthly deduction."
Refunds of amounts
A source in Abu Dhabi Islamic Bank, who preferred not to be named, said that a customer who wishes to object to the amount of the security or cancel it can file a complaint directly through the Customer Service Center, and if it is proven that he is not aware of the insurance clause, all the amounts paid can be recovered, or Only the insurance cancellation is required, and here the insurance deduction is stopped from the date of the request.
The source advised the dealers to read the terms of the contract well, and to seriously think about the issue of credit card insurance, in anticipation of any unfavorable future circumstances that may result in leaving the customer to work.
He pointed out that the customer who insures the card and quits his job submits a request to the bank for insurance coverage, so that the bank can complete the request, contact the insurance company, and then obtain insurance coverage up to 100% of the beneficiary.
A monthly dirham is granted to the insured in case he leaves work for a period of three months.