Today is the generation of smart phones. Whatever may be our earnings, we love to have smart phones. This is more a show off than to actual use. Therefore, each unique feature of these phones will come with a cost. Whatever may be the price, we love to have them at least to click some selfie 🙂 What if we lost our phones? The answer is Mobile Phone Insurance.
What is mobile phone insurance?
You can protect your phone in two ways. One way is to protect from the problems you face due to technical issues. The second way is to protect it from theft or accidental breakages. Usually if you buy a new phone, then companies offer you warranty for one year or so. However, you may notice that these day phones start to experience the technical problems only after 2-3 years. Therefore, if any such technical problems arise after warranty period then you need to bear the cost. Usually warranty will be for one year. Therefore, to protect such cost you have to opt for an extended warranty.
What is extended warranty?
Mobile phone companies and a few private companies offer this service to you. This extended cover protects your phone expenses which you need to bear in case of any technical fault. Usually one must buy this warranty within a few days of buying a new phone. To avail this extended warranty you must produce the original bill. Because the usual cost of this extended warranty depends on the cost of the phone. The higher the cost will mean higher will be the extended warranty cost. Therefore, if you purchased the phone from the gray market, then you cannot avail this warranty. Usually this warranty is same as that of initial warranty of what you get from the mobile company.
Below are the few top extended warranty providers in India.
1) GadgetCops-GadgetCops is the top extended warranty provider. They claim that apart from extended warranty they also provide coverage against Accidental Damage, Liquid Damage, All Mechanical and Electrical faults, and other Value Added Services.
2) Onsite Secure-This is also one more extended warranty provider. Here you can opt for two-year warranty. Onsite Secure not only offers mobile phone warranty, but also to your other electronic gadgets like laptops and cameras.
3) WarrantyBazaar-WarrantyBazaar also one more extended warranty provider. Usually they offer a one – year warranty, which starts immediately after the manufacturer warranty ends.
4) InfyShield-InfyShield is one more such warranty provider. They claim that warranty can be extended for up to 3 years. They offer covers to mobile phones, which are covered within India. Warranty applies for wear and tear and all defects
These are the few of them, which I found useful. There may be many more.
Why you need Insurance when you have a warranty?
Yes, it is very much required. Because, as I said above, warranty or extended warranty will only cover the technical faults. However, what about the theft or damage to mobile phone? To protect from any such untoward incidents, you must have mobile phone insurance. Currently few general insurance companies and the above mentioned few companies offer such insurance (I doubt about the companies about their insurance business). Many insurance companies stay away from this business. Because they feel of no customer or few exclusions makes mobile phone owners to stay away from insuring their phones.
What are all covered by mobile insurance?
- Riot, strike, malicious damage, and terrorist activities.
- Fortuitous circumstances.
What are exclusions in mobile insurance?
- Mysterious disappearance.
- A theft from unattended vehicles, except from fully enclosed car that is securely locked.
- Theft, loss, or damage during the hire or loan to a third party.
- Mechanical and electronic breakdown or derangement.
- Overloading and experimentation involving imposition of any abnormal conditions.
- Damage from wear and tear, vermin, atmospheric or climatic condition or gradual deterioration, inherent defect or from any process of cleaning, repairing or maintenance.
- Loss or damage due to war or nuclear perils, loss by water or from any water borne craft.
- Intentional or willful act of the insured party.
How the loss will be compensated?
Insurance companies compensate the amount equal to the cost of replacement of the instrument by a new instrument of the same specification and same capacity (including taxes) or the sum assured (whichever is lower). Also remember that based on the usage of phone the compensation value will be arrived. Like if your phone is within 90 then no depreciation, 90 days to 181 days old then 25% depreciation and more than 181 days means 50% depreciation (It is just an example).
How much it cost to buy mobile insurance?
All companies have their own yardstick to arrive at the premium. But usually it will be around Rs.15 to Rs.20 per Rs.1,000 value of phone. So if your phone cost you Rs.50, 000 then the premium will be Rs. 750 to Rs.1, 000.
Who offers mobile insurance?
The above listed companies which offer you extended warranty also offers insurance (I don’t know how they can offer insurance directly without regulator approval). Apart from these The New India Assurance, National Insurance, Oriental Insurance, United India Insurance and Royal Sundaram Insurance.
How to claim?
- Lodge a complaint (FIR) in a police station where the mobile is lost within 24 hrs from the lost of theft.
- Make sure to block your SIM by contacting your network provider.
- Keep your original bill or invoice be with you to claim your ownership of the phone.
- File for claim with the insurance company within 48 hours in case you not found your mobile.
- Fill the necessary documents, submits FIR copy and original bill or invoice.