Mobiles, especially smartphones, have become an intricate part of everyone’s life in the 21st century. Since the introduction of iPhone in January 2007, the world has seen countless iterations of these ‘smart’ devices, acting as a personal entertainment hub, digital assistant, camera and audio recorder, and of course, cell phone.
The continuous progression of modern technology and its penetration in our daily lives have resulted in ever improved smartphones available at affordable prices, making them a permanent fixture for over 2.8 billion people across the globe.
Brief look into the mobile market
- More than 5 billion people in the world own and use mobile devices, more than half of which use some types of smartphone.
- More than 1.4 billion units were sold every year throughout the last 5 years.
- India is one of the leading smartphone markets, with over 370 million units in circulation in 2019.
However, despite their usefulness, smartphones are fragile devices, often sustaining damage after accidental drops, spills, and even mishandling. A reasonable price tag, as well as repair cost, often coerces users to use some form of protection against such incidents; including mobile cases, protectors, and in many cases, mobile insurance policies.
What is a smartphone insurance policy?
These are insurance plans that offer financial coverage in case the insured device is damaged due to accident or misplaced or stolen. Such insurance policies can be purchased for coverage of the entire device or of certain components that are usually excluded from warranty coverage. It has become one of the most popular forms of insurance plans because of the essentiality of smartphones, high sum insured offered under these plans as well as the affordable premiums.
Difference between a smartphone insurance policy and warranty
There are several differences between mobile insurance policies and manufacturer’s warranty. Insurance plans often include components that are not covered under warranty, such as the phone screen. Any damage to such components is likely to be considered as user-inflicted, denying free repair under the warranty program.
Insurance plans like the Mobile Screen Insurance offered by Bajaj Finserv under its Pocket Insurance & Subscriptions provides financial coverage of expenses paid by the user to repair or replace the damaged screen. It can prove especially helpful to cover the increasing cost of repairing these components.
This insurance policy offers coverage for damages to smartphone screen due to natural causes like lightning, floor, earthquake, cycle, as well as man-made causes like riots, strikes, etc. Accidental damage and damage caused due to burglary is also covered comprehensively.
Application process
Most financial service providers offering such plans offer the provision of purchasing mobile insurance online. Customers only have to fill an online application form available at their preferred financial institution’s website with necessary details like name, contact information, details of the insured device, etc. After successful form submission, they will receive an OTP for verification, post which they will be able to pay the premium to initiate the insurance coverage.
Reputed insurance aggregators allow multiple payment methods (UPI, credit or debit card, net banking, etc.) for the premium.
Claim process
Customers can claim mobile insurance policy by informing the financer via phone, email, or regular mail. The contact details will be provided to the insured at the time of premium payment.
Customers will also have to submit some basic documents while filing a claim. These include –
- Claim form with all the necessary information detailing the incident that caused the damage.
- Validation reports, invoices, etc. to support the claimed amount.
Usually, most insurance aggregators determine the limit on disbursed sum depending on the cost of repair, unit price, and claimed sum.
Customers can also opt for other insurance policies to extend the coverage to accessories like phone chargers. They can opt for a mobile charger insurance plan for financial protection against repair for damages caused to the charger or for replacement. Other expensive gadgets like headphones can be insured with a wireless headphones insurance policy, ensuring complete financial freedom and protection against any monetary loss in case it is lost or damaged.
It is advisable for users to have a mobile insurance policy in place for high-end and expensive smartphones or for other accessories. A nominal annual premium makes it affordable, while a substantial sum insured guarantees complete coverage against any financial costs incurred.
