Citibank Credit Line Complimentary Insurance

Information verified correct on October 1st, 2016

Citibank clients are offered an extensive range of benefits for having a credit line or a credit card issued by one of the largest financial groups in the world.

Many people don’t use the complimentary insurance policies they are offered because they aren’t certain what coverage they have. In fact, some people gloss over the fact that they have coverage and even end up forgetting their card comes with automatic insurance, meaning that they often pay for things they don’t have to.

Among these benefits, you can find an extensive range of covers. Depending on the type of card you hold, the types of insurance policies available differ. Zurich is the institution that provide insurance for eligible Citibank products, so if you are to make a claim ensure that you contact Zurich.

Please keep in mind that the insurance policies detailed below, along with their terms and conditions, are available to anyone who has been approved for any of the following types of loans:

Filing a claim

When it comes to filing a claim, if you want it to be successful, you must have first taken sensible precautions to protect your personal possessions, such as not leaving them alone in a public area, which would make for an excellent opportunity for someone to steal your items and would be considered a good reason for the denial of your claim. So, if you want your claim to be successful, make sure that you don’t forget your purchases on a park bench because you won’t be able to lodge a claim in such a situation.

Note that you also need to file a report with the police if you lose your items or they are stolen or damaged on purpose and this report must be filed within 24 hours of discovering the occurrence. Ensure that the report includes a list of the items that were lost or damaged as well as their description. Also make sure to get a copy of the report as you will have to submit it to the insurance company.

In some cases, the insurance company will request that you fill out a written loss report. The report must be sent back to the insurance company within 30 days of it being received. Note that you might also have to provide additional documents or materials to back your claim. Some of the documents you might be asked to submit include:

  • Police reports;
  • Certified translations;
  • The damaged products;
  • Receipts;
  • Some form of evidence that you are the owner;
  • Quotations;
  • Valuations;
  • Catalogue from the store or advertisement;
  • Original Australian warranty.

If you don’t fill out the loss report or ensure the insurance company gets the documentation they ask for, they might deny your claim, so make sure you conform to the conditions and deadlines they impose.

Note that you also have the obligation of helping the insurance company if they have to take legal action against a third-party to recover any amounts that you were paid under any of these policies. You also have to inform the insurer of any other insurance you have that you could file a claim under. If you receive compensation from another insurance company, you cannot receive money from two insurers that exceeds the total value of your loss, so you will have to refund any amounts you receive under these policies.

Note that if you lose a product or it is stolen or damaged, the insurance company may opt to repair the item, replace it or offer you payment after amounts representing depreciation and wear and tear are deducted.

If the item was part of a set, you will only be paid for the value of the specific item that was lost, even if the set has special value. For example, if you lost an earring, you will only be compensated for the one earring rather than the pair. Also, you cannot receive compensation that exceeds the amount you paid for the product in question.

In this guide, we’ll be looking at the insurance policies attached to certain credit lines offered by Citibank. We will look at exactly what policies are available, how they protect you and for how much. Furthermore, we’ll be looking at other details including what level of excess is payable, what exclusions apply and how you can make the claims process run a little bit smoother.

The Policies

Citibank offers its clients three different types of policies, completely free of charge, once they have been approved for a credit line. Thus, once you have a Citibank credit line, your purchases will be protected by the Purchase Cover Insurance policy and the Extended Warranty policy and you can also be certain you will never overpay for an item thanks to the Guaranteed Pricing Scheme.

Purchase Cover Insurance

The Purchase Cover Insurance policy provides a great way to protect any purchases you have made as you get 90 days of coverage against any items you bought being stolen, lost or damaged. Note that this coverage doesn’t apply to all types of items and only to certain purchases, though we will be looking at exactly what a covered item is considered to be a little later on.

As with any insurance policy, you need to meet certain conditions to qualify for insurance. Thus, where you bought the item does not matter as goods purchased anywhere in the world are covered by this policy. You could have also bought the item and given it as a gift to a person who is a permanent resident of Australia and the item would still be covered. However, for you to get coverage at all, you must have used your credit line account to have paid the entire cost of your purchase.

Since these credit lines come with cards attached, it’s quite easy to ensure you pay for your purchases using your account, which will activate the policy and make sure the items you purchased are protected.

You are insured for 90 days from the day you purchased the goods in question. Keep in mind, though, that items purchased under an instalment payment plan are subject to slightly different rules, in that coverage begins on the day you have made the last payment and the item has been fully transferred into your possession. For example, if you bought a mobile phone on a 12 month contract and used your account to pay all the instalments, the coverage becomes active in the 12th month, after you have made the last payment.

Under this insurance policy, your purchases are covered if they are accidentally damaged, lost or stolen anywhere in the world as long as you, or the person receiving the item, have taken possession of the item. In other words, if you place an order while travelling overseas and you ask the store to ship it directly to your home, coverage only begins once you actually have the item, meaning it is not covered during transport.

It’s also important to note that you have 21 days to file a claim from the moment the damage, loss or theft occurred.

How much do I get?

The insurance company sets a limit on how much they will pay out, which is to be expected. Note that there is also an excess of $100 that applies for every claim you file, though you will only have to pay it once if you are filing multiple claims as the result of one event.

Firstly, you will either be compensated with the amount that you actually paid for the item using your credit line account or with $1,000 for a claim made for the loss, theft or damage of fine arts, watches or jewellery, whichever amount is smaller. In other words, if your watch is stolen, even if you paid $1,700 for it, you will only receive $1,000 for it.

There is also a limit in terms of how much you can receive during a one year period. Thus, the insurance company is not willing to pay out more than $50,000 per year per eligible credit account, regardless of how many claims you need to file and their total value.

Extended Warranty Insurance

The Extended Warranty insurance policy ensures that you are protected against having to pay out of your own pocket to fix or replace an item you purchased using your credit line, if said item malfunctions or stops working.

In terms of eligibility, every account holder is covered by this policy as long as the item was paid for in full using the eligible account. Note that the extended warranty insurance policy cannot be transferred.

Under the extended warranty insurance policy, you are protected against having to pay to fix or replace an item that is covered out of your own pocket. Note that this insurance applies if the item suffers a breakdown that is already covered by the original Australian warranty and the original warranty period has expired. However, you are only covered if:

  • you took precautions and were careful to keep your purchases safe and maintain them properly;
  • you got approval from the insurance company before you replaced the item or got it fixed, or any of its parts that have broken down;
  • you submit the item that broke down or any of the related parts for inspection to the insurance company.

The Extended Warranty Insurance policy becomes active once the original Australian warranty has run out and is valid for the same timeframe as the original warranty but cannot exceed one year. Note that if the original warranty period is longer than five years, the Extended Warranty Insurance policy is no longer applicable.

The chart below presents some examples of how the Extended Warranty Insurance policy works;

Original Australian Warranty Period       Extended Warranty Period
10 days10 days
21 days21 days
2 months2 months
8 months8 months
1 to 5 years12 months
More than 5 yearsCover does not apply

In terms of coverage limits, the insurance company is willing to pay out no more than the amount you paid for the product using your credit line account. Note that the company will not pay out more than $20,000 in total for claims filed during one year for one account, regardless of the total value of the claims filed. When filing a claim, keep in mind that an excess of $100 applies per claim.

Guaranteed Pricing Scheme

The Guaranteed Pricing Scheme ensures that you will always pay the best possible price for any item you purchase. This means that if the exact same product is showed in a catalogue printed by a store at a cheaper price than the amount you paid, you will be reimbursed for the price difference.

Note that the Guaranteed Pricing Scheme is applicable only if you paid for the entire value of the item using your credit line account and the difference in price between the two items is more than $75.

Thus, under the Guaranteed Pricing Scheme you are covered for the price difference between an item you purchased that is eligible for coverage and an identical products sold by a different store and advertised in their catalogue, which must have been printed within 90 days of you making the initial purchase. Note that this scheme only applies if;

  • The item that is cheaper is identical to the one you purchased in terms of model number and year, as well as being produced by the same manufacturer;
  • The cheaper item is new;
  • The item that is showed at a lower price is advertised in a catalogue belonging to a store that is no further than 25 kilometres of the original shop where you bought the product;
  • You file a claim under the Guaranteed Pricing Scheme no more than 60 days after buying the product;
  • You submit the catalogue featuring the cheaper item to the insurance company as proof.

In terms of the level of coverage, the maximum amount you will be compensated for is $500, regardless of the price difference. Again, it’s important to keep in mind that the price difference must be at least $75 for coverage to apply.

Furthermore, this scheme does not apply to an item that was bought online or is advertised solely online.

What items are covered by these policies?

Knowing what items are eligible for coverage is important to save you time and hassle. Thus, the insurance company considers any item that was purchased for your own use or for household or domestic purposes to be covered, except for the following:

  • Products you purchased with the expressed intent of reselling or trading them;
  • Any items owned by a business or associated with a business;
  • Any animals or plants;
  • Computer programs or other items that are not tangible;
  • Vouchers, gift cards, trading cards, or any type of tickets;
  • Cash, negotiable instruments, bullion, or travellers cheques;
  • Any type of collection including stamp, coin or card collections;
  • Products that are consumed or that perish with age, such as drink, drugs, fuel, oil, cosmetics or food;
  • Cars, motorbikes, airplanes, boats, motorboats or any other type of vehicle equipped with an engine as well as their components and any accessories that have been installed on them;
  • Second-hand goods, which includes antiques;
  • Goods that are considered contraband;
  • Real estate property as well as related movable fixtures or fittings that are an integral part of the building, such as stoves, ovens, fixed air conditioners and dishwashers;
  • Any product you spent more than $10,000 for under the Guaranteed Pricing Scheme policy and Purchase Cover Insurance policy as well as any product that cost more than $20,000 for the Extended Warranty Insurance policy.

What am I not covered for?

There are also certain exclusions according to which you don’t have coverage. This is either due to the costs involved or the type of event, which would make things difficult for the insurer. Thus, you won’t be compensated for a claim that is the result of any of the following:

  • If you left your personal possessions or business goods without supervision:
    • o   In a public area, whether or not you forgot them, mislaid them or left them behind;
    • o   In a car or other vehicle, except for situations in which you put the goods in the boot and someone forced it open;
    • o   In a car overnight, even if you left your possessions in the boot;
    • o   With someone who causes them deliberate damage or who steals them;
  • If you left any form of jewellery, watches, mobile phones, cameras, light electrical goods, laptops, cash or similar without supervision at any moment or you left them in a car, regardless of where in the vehicle they were left, or in your luggage;
  • If you post or pay for the transport of the items that are the object of the claim, without them being part of the luggage accompanying you;
  • If the items are confiscated or destroyed by any authority or official, including customs;
  • If any items disappear and you don’t have an explanation that the insurance company considers satisfactory;
  • Fluctuation of currency exchange rates;
  • You didn’t take sufficient precautions;
  • Acts of terrorism;
  • War, regardless of whether or not war has been declared officially, invasion, hostilities, the actions of a foreign enemy, riots, rebellion, revolution, insurrection, military coups, overthrowing or an attempt to overthrow a government or military power, civil war;
  • Damage or loss due to normal wear and tear, deterioration, weather conditions, flooding, mould, fungus, mildew, animals, vermin, rodents, insects, inherent problems with the product;
  • Damage caused by various procedures including service, repair, restoration, alteration or cleaning, like washing, dry cleaning and ironing;
  • Consequential loss or damage, exemplary, aggravated or punitive damages or any fines or penalties;
  • Radioactivity or the presence, utilisation or leakage of nuclear materials, fuel or waste;
  • Applying, dispersing, or releasing poisonous or pathogenic biological or chemical materials.

The following items are also part of the exclusions and do not have coverage under the insurance policies attached to your credit line:

  • Books of account, artwork, antiques, manuscripts, securities and stamps;
  • Sporting goods while they are being utilised;
  • Any goods that are meant to be sold or traded;
  • Any items that are owned by a business, related to a business, meant for business use or purchased by a business;
  • Commercial samples;
  • Goods that are fragile or easily breakable except if the damage or loss was the result of someone trying to steal them, a fire or the transport you were travelling on was involved in an accident. Note that video equipment, contact lenses, binoculars, laptops and spectacles are not considered part of this category.

Remember that with any insurance policy you need to know exactly what you are and aren’t covered for so there are no surprises. Always check the terms and conditions before applying for any financial product and consider your personal and financial situation.

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