Gadget insurance: 9 points to remember

In this age of technology our home has almost turned into a smart home with the entire stretch from morning till night being spent under the influence of multiple electronic and intelligent gadgets such as mobile phones, laptop computers, smart tv, voice assistance device etc. To protect these expensive items, gadget insurance is gaining popularity fast.

But how many of us know about gadget insurance? Here are nine points about gadget insurance.

What is gadget insurance

This is an insurance plan where you get protection against accidental damage, water/fluid spillage on gadgets, theft, burglary and fire damage. They provide more extensive coverage than warranties.

There is a list of gadgets which can be insured like cell phones, laptops, digital cameras, computers etc. In case, gadget gets stolen, damaged, etc. insurance company would compensate for the loss.

Insurance is important

Manufacturers usually provide a one-year warranty which is mostly limited to manufacturing defects and some other things. So, if a gadget is stolen or damaged, you have to spend from your pocket and buy a one. For these reasons, people prefer to get their gadgets covered in an insurance cover.

No theft or physical damage is covered under default warranty scheme of a gadget. You have to buy it separately according to your choice.

Clause

Gadget Insurance provides protection against physical or electronic accidents. It is very important for the safety of expensive gadgets. You get protection in scenarios like theft, loss, breakage and damage from water or other liquid. You are compensated for the cost of the replacement of the gadget.

In some cases, in case of total loss or theft, depreciation value will be deducted from the total value of the gadget and remaining amount will be transferred to customer’s account.

What are covered

Theft, burglary, liquid damage, physical damage and others are covered under gadget insurance. This is completely different than the warranty coverage.

In warranty coverage only manufacturing and software related defects are covered, but under an insurance coverage almost all things are covered.

Pocket pinch

You have to pay according to your gadgets and the plan you choose. Suppose if you go for a mobile insurance, then the yearly premium will range from Rs 50 to Rs 13,000. On the other hand, for laptop it varies between Rs 500 and Rs 1 lakh.

Smart TV, smart appliances and others also have multiple insurance option according to your needs. The cost also varies according to multiple factors.

Where to buy

Gadget Insurance can be purchased for new gadgets only, not for second-hand ones. It is readily available in stores when you buy the gadget. The cover is otherwise not sold by insurers either in their branches or through agents.

But right now some private companies like Acko, ICICI Lombard, Bajaj Finserv and others offer online insurance purchase for electronic gadgets including mobile phone.

Claim procedure

Once your gadget is stolen or damaged then you can claim for reimbursement. But you must keep the purchase invoice of the gadget and the serial number also, as these both will be required at the time of filing the claim.

File an FIR within the first 24 hours after the loss or theft. Then file the claim within 48 hours with the claim intimation and FIR.

Time taken

Generally, insurance companies close the issue and credit the amount within 3 to 7 days after submitting the claim, subject to fulfilment of all criteria.

If they reject your claim then go through the cause thoroughly and try to solve it with negotiation, as insurance companies might sometimes try to avoid the claim.

Trends

Industry experts say this industry has witnessed at least 30% hike over the past 18 months across the country.

Onsitego, which offers extended warranty, said damage protection has witnessed 30% rise in the ticket size of insurance products since June, 2020. The average ticket size of insurance premium stands at Rs 2,500.

Acko General Insurance, which offers mobile phone insurance along with other gadget insurance has seen a 30-35% increase in ticket size of premium collection of gadget insurance.