Expensive phone? Here’s how mobile insurance can ease your mind

Mobile insurance has become increasingly essential given the pivotal role smartphones play in our daily lives. With our heavy reliance on them for communication, work, and entertainment, the prospect of losing or damaging a smartphone can indeed lead to significant disruptions. 

Having mobile insurance can provide a financial safety net in such situations, offering peace of mind and ensuring that you can quickly recover from any unfortunate incidents.

Mobile insurance is a type of insurance policy designed specifically for mobile phones. This policy provides coverage for instances such as loss or damage to the phone. It can be purchased directly on your mobile device, offering a convenient way to protect against potential damages.

Why is mobile insurance essential?

Mobile insurance may not be mandatory, but it can be a crucial financial safeguard for your mobile or smartphone. Here's why investing in mobile insurance can be a smart choice:

1. Theft protection - Recovering a stolen phone is challenging, and the loss of data and financial setback can be significant. Mobile insurance covers the cost of a new phone in such situations.

2. Accidental breakage protection - Mobile phones are expensive, and repairing them can be costly. Mobile insurance provides coverage against accidental breakage, making it a wise investment.

3. Water or liquid damage cover - Mobile insurance typically covers accidental damage caused by water, moisture, or humidity, which might not be covered by warranties.

4. Covers high repair costs - High-end phones like those from Apple, Samsung, OnePlus, etc., can incur substantial repair costs. Mobile insurance can help avoid hefty repair bills.

5. Protection for loss of phone - If your phone is lost, warranties usually don't provide compensation. However, mobile insurance offers compensation up to the insured sum in such cases.

What will be covered in mobile insurance?

Mobile insurance offers coverage for various types of damage to your mobile device. Here's what is typically covered:

1. Theft or robbery - Replacement or repair of the lost or damaged phone within 48 hours of reporting the incident.

2. Accidental damage - Protection against accidental damage, such as drops or impacts that result in cracks or breakage.

3. Liquid damage - Coverage for damage caused by liquid seepage.

4. Technical malfunctions - Coverage for technical malfunctions like problems with ear jacks, charging ports, and touch screens.

5. Screen damage - Coverage for damages to the screen of the phone.

6. Fire damage - Coverage for damages caused by fire.

7. Doorstep pick-up and drop facility - Some policies offer the convenience of doorstep pick-up and drop facility for repairs.

8. Cashless process - The process for coverage is often cashless, making it easier to handle repairs without upfront payments.

9. No claim bonus - Some insurance companies offer a No Claim Bonus to policyholders at the time of policy renewal if no claims were reported during the previous policy term.

What mobile insurance does not cover?

While phone insurance policies cover a wide range of damages, they usually exclude coverage for:

• Mysterious loss of the phone
• Damage due to extreme weather conditions
• Theft of the phone when left unattended
• Damage caused by someone other than the owner using the phone
• Pre-existing defects in the phone
• Deliberate damage to the phone
• Damage to overloaded or experimental phones

Extended Warranty v/s Mobile Insurance

Many people wonder why they should invest in a mobile insurance plan when they can simply purchase an extended warranty for their mobile phones. However, it's important to note that these two options serve different purposes.

An extended warranty primarily extends the coverage provided by the manufacturer's warranty, typically for mechanical or electrical breakdowns. On the other hand, mobile insurance offers a wider range of coverage, including protection against theft, accidental damage, and liquid damage, in addition to mechanical and electrical issues.

Extended warranties are typically available only for new phones. On the other hand, mobile insurance plans can cover both new and second-hand phones.

Coverage through extended warranties is provided by the manufacturer of your mobile phone, extending the warranty beyond the initial period. On the other hand, insurance policies for phones are offered by insurance companies, providing coverage for various damages and losses not typically covered by warranties.

In essence, while an extended warranty is beneficial for addressing specific mechanical or electrical problems, mobile insurance provides more comprehensive coverage for various types of damage and loss.

Frequently Asked Questions 

1. Can a mobile phone purchased outside India be covered under a mobile insurance policy in India?

Yes, some private insurance companies in India provide insurance cover to mobile phones purchased outside India, offering worldwide coverage.

2. Does any insurance provider help in retrieving lost data from a damaged mobile phone?

Some private mobile apps have partnered with insurance companies in India to automatically back up phone data on cloud servers. Regular data backups are advisable to avoid data loss.

3. Does mobile insurance cover damage to the internal circuits of the phone?

Yes, some insurance companies provide coverage for the motherboard or other internal circuitry of the mobile phone.

4. What information do I need to file a claim for my phone?

When filing a claim, you should have the make and model of your device available, as well as a method of payment for your deductible, along with the basic details required to fill in the claim form.

5. Is there any limit to the number of claims I can make?

Yes, most providers impose a limit on the number of claims one can raise, depending on the insurance company.

Rohit Gyanchandani is Managing Director at Nandi Nivesh Private Limited