User:Physics is all gnomes/NPP tutorial/Mobile and Cellular Phone Insurance in India
Mobile phone insurance in India is still in its nascent stage. More so because Insurance Companies themselves are reluctant to promote or offer the same due to apprehension of huge claims ratio. Traditional Insurance Policies largely do not offer coverage to individual mobile phones. As such, general public are not offered Mobile Phone Insurance Policy, as individual policies offered to stray clients tend to result in high claims ratio. So, the policies are issued through tie-ups with Mobile Phone retailers so that the number of phones covered is large enough to bring in more premium income to compensate for the losses. Adhering to the principle of law of large numbers in Insurance. Claims ratio is checked by means of excess or deductible for each and every claim, depreciation according to the age of the mobile and restricted coverage in the Policy. Moreover, only new mobile phones are offered the cover as the depreciated value of the mobile due to age factor is restricted and the Insured is also more inclined to take care of his/her mobile phone.
Details to look out for:-
Policy Coverage:-
Insurance Companies differ from one another in their offer of coverage. Public should look out of the wordings carefully because when there is mention of ‘Theft’ coverage, people are inclined to believe that missing/misplacement also comes under the term ‘Theft’. Companies that offer coverage with the term ‘Fortuitous Circumstances’ offer a wider coverage as it includes any unforeseen event or events happening by chance.
Period of Insurance:-
Usually Policy period is offered for One year only for new mobiles and renewal of policy thereafter is not offered.
Exclusions:-
Certain companies do not cover losses due to missing, misplacement. Some of them also exclude losses due to entry of water, mobile left unattended in vehicles, mobile left in cars not securely closed and locked etc. Mechanical/Electrical breakdown is also excluded by some companies. Another aspect to look out for is that accessories & cost of software’s are usually excluded in the Policy. So, memory card, chargers, SIM, headset are usually excluded.
Excess:-
Claims are subject to deductible on each and every claim in order to avoid small claims. Making a small claim is thus discouraged. Usually the amount is any where between Rs.200/- and Rs.250/- per claim or sometimes restricted to 5% of claim amount subject to certain minimum amount.
Depreciation:-
It is the amount deducted as a percentage for the age of the mobile phone. Usually it ranges from 5% to 50% for a period of one month to 6 months and it depends on the company’s policy terms.
Claim Procedure:-
Some of the papers called for are Claim form, purchase invoice etc. Bills and receipts in case of repairs. Surrender of damaged mobile phone in case of total loss. Police complaint, NTC or Non Traceable Certificate in case of Theft/Missing claims. Some companies also insist for letter of subrogation in notarized stamp papers to ensure transfer of rights upon the mobile phone lost to the Insurance Company.
Retailers offering Insurance in India
Mobile Phone Retailers in India are making brisk business with manifold increase in mobile phone users. With the presence of many retailers in the market, some of them have come up with mobile insurance in order to survive the stiff competition. A win-win situation is ensured for the customer, retailer, and the insurance company by this arrangement.
Some of the retailers offering mobile insurance are:-
Poorvika Mobile World
Univercell
Sangeetha Mobiles
Some of the Insurance Companies offering mobile insurance are:-
The New India Assurance Co Ltd
Oriental Insurance Co Ltd
Links
The New India Assurance Co Ltd - Mobile Phone Insurance
Created 20 minutes ago by new user Ashbin