What is Mobile Phone Insurance and How Does it Work?

What would you do if you lost your latest iPhone? You may consider buying a new one since you have the money. But think about those people who save throughout the year to buy the latest iPhone or any expensive smartphone. It’s like heartbreak for them. Many people even pay for mobile phones on instalments as they don’t have enough money to pay the full upfront price. To ensure that you don’t have to spend a fortune on a new mobile phone, it’s better to get mobile phone insurance.

What is mobile phone insurance?

A mobile phone insurance policy provides coverage for mobile phone repairs or replacement. It also covers the cost of the original phone if you lose it and must buy a new one.

Suppose you lose your Samsung Galaxy Note 20 Ultra after a year. The latest S21 Ultra is already in the market, and you prefer to buy it instead of the old model. If you have mobile phone insurance, you will get coverage for the Note 20 Ultra model and pay the additional cost of the S21 Ultra from your pocket. Similarly, if you break the screen of your phone or its motherboard doesn’t work properly, you need to send it to the repair centre. The cost involved in repairing the phone will be covered under your mobile phone insurance.

Should you buy mobile phone insurance?

Buying mobile phone insurance may seem like a luxury for many, but it’s a necessity if you fall in the categories below:

• You tend to lose your belongings including your gadgets.

• Your job might involve situations that could cause damage to your smartphone.

• You don’t want to downgrade to one of the cheaper models if you lose your phone.

• You use your mobile phone for work purposes and wouldn’t be able to live without it even for a day.

What coverage do you get in a mobile phone insurance?

Mobile phone insurance policies usually cover the cost of repairing your damaged phone or the cost of the original phone if you lose it. Some of the policies also cover the cost of phone accessories, accidental damage, and protection when abroad. It is always wise to read the offer documents and policy terms and conditions carefully before buying the insurance.

What does the policy not cover?

As already mentioned, you should read the terms and conditions of the policy before signing the insurance papers. In most policies, you will notice that they don’t cover the following items:

• Carelessness

Suppose you are taking photos with your mobile phone from the passenger seat of a car with your hands out. The phone accidentally hits a light post and it breaks. In this case, the insurer may reject your claim because it was your carelessness that damaged the phone.

• Water damage

If your phone is not water-resistant and you still try to put it underwater and it doesn’t work after that, the insurer will not entertain your claim. Sometimes, you may accidentally drop your phone in the swimming pool or the loo and expect the technology insurance company to reimburse the amount spent on repairs. It’s a tricky situation where the insurer has the upper hand because he may say that you were careless and didn’t take reasonable care of your phone.

• Theft while unattended

Suppose you leave your phone on a counter in a supermarket and go down the aisle to buy something. You come back and see that your phone isn’t there. Someone has stolen your phone. You call the insurance company and explain the situation, expecting them to cover the cost of buying a new phone. Unfortunately, the insurance company may not cover this cost as the phone was stolen when you left it unattended. Had the phone been in your bag and someone stole it from that position, the insurance company may have reimbursed the amount.

• Delay in reporting lost phone

Sometimes, you take too much time to look for your lost phone and don’t report the theft right away. This may go against you when it comes to the insurance company covering the cost of the new phone. Most insurance companies expect you to report the loss within 24 hours. Therefore, don’t waste time reporting the case to the nearest police station.

Claims process for your mobile phone insurance

Insurance companies have stringent rules for claiming the insurance coverage of your mobile phone. Here are a few things that you need to do step by step to ensure that you receive the claim without going into complications.

• You should report the loss of your phone to the police station as soon as you realise it. The longer you take, the riskier it gets to receive your deserved claim. Make sure you read the terms and conditions regarding the maximum time available to report the loss. Most companies allow you a 24-hour window to report the case. Some companies may have a 12-hour period.

• Contact an authorised dealer regarding the repair of your mobile phone if it gets damaged. Find out the quotation to repair the phone and compare it with the coverage amount. Notify the insurance company regarding the damage and the cost involved in repairing it.

• In the case of theft, you should file an FIR and submit the complaint to the insurance company. The insurance company will go through the FIR before sanctioning the reimbursement amount.

• If the phone gets completely damaged due to a fire in the house or flood, you shouldn’t waste time reporting the incident to the insurance company. Prompt reporting will tilt the case in your favour and you may receive full coverage of the new phone.

Mobile phones are getting more and more expensive every year. Even though they provide excellent features, you need to understand that not everyone has enough money to buy a new phone if they lose one of their prized possessions. Therefore, buying mobile phone insurance is a necessity if you don’t want to spend a fortune on another phone from your own pocket.