[ New Search ]
Do I have to purchase credit card insurance from my credit card issuer?
No. Purchasing credit card insurance is optional and is not a condition for obtaining a credit card.
Credit card insurance offers protection against unforeseen events that can affect your ability to pay your bills, such as disability or death. This type of insurance covers any outstanding balance on your credit card, up to a specified maximum amount. Like other forms of insurance, you must pay a premium to obtain coverage. Credit card insurance has a number of conditions and exclusions — such as which illnesses are covered — which are outlined in your insurance agreement. Credit card issuers offer insurance on the balance on their credit cards through the insurance companies they deal with.
On May 9, 2000, six banks (Bank of Montreal, CIBC, National Bank, Royal Bank, Scotiabank and TD Canada Trust) voluntarily committed to some "best practices", which include obtaining their express consent before supplying customers with, and billing them for, new products or services. This commitment applies to any product these banks offer, including credit card insurance.
As part of this commitment, these banks will:
If you were charged for a service that you did not agree to buy, by one of the banks listed above, you can make use of your financial institution's complaint-handling process and contact FCAC. We can investigate to determine if your financial institution has met its obligations.
Federal financial consumer protection legislation requires all federally regulated financial institutions to have a complaint-handling process in place to help resolve disputes between consumers and their financial institutions. This process includes a third-party dispute-resolution body.
FCAC publishes the complaint-handling process for all federally regulated financial institutions on its Web site. To find the complaint-handling process for your financial institution, click here . If you are having difficulty finding this information, call our Consumer Contact Centre at 1-866-461-3222 (toll-free).