KB changes card insurance. Clients pay extra for improvements

KB changes card insurance. Clients pay extra for improvements
KB changes card insurance. Clients pay extra for improvements

Merlin insurance, which is used by roughly a third of payment card owners from Komerční banka, will end this year. It will be replaced by a new service called Extra Security Service. It will bring higher coverage, but it will also be more expensive.

Clients who have Merlin will receive new insurance automatically with the transition to the new banking system of Komerční banka KB+. During the transfer, the bank will inform them about the new type of insurance and at the same time invite them to choose one of its two variants.

New clients can order the new Bezpečí Extra service immediately if they are interested.

Insurance will be an optional service for an additional fee, the bank does not yet plan to include it even in higher current account tariffs such as Exclusive (CZK 169 per month) or Komfort (with a flat rate of CZK 89 per month).

The Bezpečí Standard Extra service option costs 39 crowns per month. In terms of coverage, it is similar to the previous Merlin, some benefits are higher. The second option, Plus, has extended services and extra bonuses, but costs 99 crowns per month. Until now, clients have paid 348 crowns per year for Merlin (29 crowns per month).

At the beginning of January, Merlin slashed the current insurance price for all insured clients for the entire year 2024. Even if they switch to new insurance during this year, they will not pay anything extra for it. The bank will only start charging them the new prices from 2025, after they have chosen one of the two options.

“Our new insurance provides insurance coverage for all payment cards held in the client’s name in cases of theft, robbery or loss of the card and its subsequent misuse in stores or during online payments. However, there are also situations where the client is forced to withdraw money from an ATM under the threat of violence. The insurance has two options: Standard up to 75,000 or Plus up to 150,000 crowns,” explains Martin Svoboda, product manager of KB Pojišťovna, which provides the product within the group. The existing Merlin has a fulfillment limit of 50,000 crowns.

The Plus variant also includes special insurance in case of misuse of bank data to make unauthorized electronic payments, including phishing attacks. The insurance benefit limit is 100,000 crowns.

“This coverage also applies to payment cards when they have not been lost or stolen, but only because their data has been misused. Of course, gross negligence on the part of the client is excluded, for example when he provides his data on an obviously untrustworthy or unverified website or does so despite the bank’s warning of possible fraud or discloses his data, although this is a non-standard instruction for a given business transaction on one of the sales portals. Svoboda explains.

Like Merlin, the new Bezpečí Extra service also covers theft or robbery of personal belongings (including cash withdrawn from the account no later than 48 hours ago) and loss of documents or keys. The new insurance also covers the loss of a wallet, hand bag, sunglasses and prescription glasses, medicines and medical aids. The total limit for the mentioned events is 30,000 in the Standard version (as Merlin has) and now 50,000 in the Plus version.

Like Merlin, the new Extra Security service will be valid worldwide.

The new product from KB Pojišťovna also covers the risks associated with a mobile phone, including its misuse for calling, sending SMS or accessing the Internet, with sub-limits of 15,000 and 25,000 depending on the variant chosen.

Like Komerční banka, KB Pojišťovna is a member of the Société Générale Group.

Kateřina Hovorková

At Peníze.cz, he focuses mainly on personal finance and the labor market. He has been working in the media since the 1990s. She started at the Czech Press Agency, later went through the editorial offices of MF Dnes, iDnes, worked in Hospodářské noviny and on the website Aktuálně.cz…. Other articles by the author.

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Tags: card insurance Clients pay extra improvements


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