Coop Pank supplements 55,000 bank cards with free purchase protection insurance

Teet Kerem, the head of private daily banking at Coop Pank, said that while Estonian banks had normally been providing purchase protection insurance in their upscale plans or with premium credit cards, Coop Pank was making purchase protection insurance available to all its private bank card users.

“Starting at the beginning of April, free purchase protection insurance will be automatically added to all Coop Pank’s private clients’ debit and credit cards. The six-month purchase protection insurance will apply to all the durable goods at a price between 100 and 2500 euros purchased with the card. This means such items as mobile phones, electric scooters and household appliances will be protected, but the insurance will also cover expensive clothes and footwear. If the item deteriorates, is stolen or is destroyed within six months after it was bought, the purchase protection insurance will compensate the cost of its repair or replacement,” Kerem explained.

Veiko Sepp, the product manager of property insurance at If Kindlustus, pointed out that more and more losses under purchase protection insurance were being compensated. “According to statistics, for instance, 42% of losses associated with smart devices take place during the first six months after the item is purchased. So, we will probably be able to help tens of thousands of Coop Pank’s clients by means of these compensations. It must also be noted that the deductible for purchase protection insurance is only 30 euros, which is several times lower than the deductible for home insurance,” Sepp elaborated.

Teet Kerem provided an example of using purchase protection insurance: “The client uses the bank card issued by Coop Pank to buy a pair of shoes which costs 130, but they are accidentally damaged within six months after the purchase: the family pet chews them up. In such case, the insurance company will compensate 100 euros of the cost, and the client will have to cover the 30-euro deductible.”

Terms and conditions of purchase protection insurance in detail: https://www.cooppank.ee/s3fs-public/ostukindlustus.pdf.

Starting on 1 April, Coop Pank has redesigned its service plans for private banking clients, bringing a number of free services and a new free banking plan meant for card-free transactions. Supplementing the cards with free purchase protection insurance is another benefit the bank now offers to its private clients.