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What you should keep in mind before buying gadget insurance?

by Shatakshi Gupta

In this age of digitization, IoT, and AI we are surrounded by smart devices. We rely heavily on these devices for our daily work and breadwinning. There is no relevance in explaining the importance of these devices. We know, how indispensable are these gadgets in our lives. So, it becomes important to protect these devices from damage or theft. The loss of gadgets costs heavily on our pocket and sometimes emotionally as well. To protect against such loss, gadgets insurance comes to the rescue. In this article, we will tell you about things that you must keep in mind while buying any gadget insurance.

 Firstly, What is a Gadget Insurance?

 Gadget insurance is an insurance plan where you get protection against damages caused by accidental damage, water/fluid falling on gadgets, theft, and fire. These provide extensive coverage as compared to insurance warranties.

There is a list of gadgets that can be insured like cell phones, laptops, digital cameras, computers, etc. In the event of the gadget being stolen, or damaged, the insurance company compensates for the loss.

 Why gadgets insurance is important?

 Manufacturers usually give one year warranty which is mostly limited to manufacturing defects and a few other things.  So, if a gadget gets stolen or damaged, you have to pay out of your pocket. For these reasons, people prefer to take insurance cover for their gadgets. The default warranty scheme of the gadget does not cover any theft or physical damage. You have to buy their coverage separately according to your choice.

 Points to keep in mind before:

Also read: Here Are 6 Tips To Cut Down Your Car Insurance Premiums

  • Clause

 Gadget insurance protects against physical or electronic accidents. It is very important to protect expensive gadgets. You get protection through insurance in case of damage or theft due to water or any other liquid. You are compensated for the replacement of the gadget. Sometimes, in case of total loss or theft, the depreciation value is deducted from the total value of the gadget and the balance amount is transferred to the customer’s account. So you must check the clause before purchasing insurance cover.

  • Coverage

 Theft, liquid damage, physical damage, and many more situations are covered in gadget insurance. This is much more comprehensive than standard warranty coverage. Warranty coverage covers only manufacturing and software-related defects, but insurance coverage covers almost everything. So, to get the best deal, you must compare the coverage in the policy.

  • Check the cost of the device to premium ratio

 You have to pay according to your gadgets and the plan chosen by you.  Suppose if you go for mobile insurance, then the annual premium will range from Rs 50 to Rs 13,000. At the same time, it is between Rs 500 to Rs 1 lakh for laptops and other costly gadgets. Smart TV, and Smart Appliance also have many insurance options according to your need. Their cost also varies considering the multiple factors. So, you should keep in mind the importance of gadgets and choose insurance wisely.

  • From where you are purchasing

 Gadget insurance can be bought only for new gadgets and not for old gadgets. When you buy a gadget, it is easily available in those same retail outlets. This cover is not sold by insurance companies or at their branches or through agents. However, some private companies like Acko, ICICI Lombard, Bajaj Finserv, and some others are offering online insurance for mobile phones as well as electronic gadgets. These online insurances can save you a little money.

  • Claim procedure

 Once your gadget is stolen or damaged, you can claim reimbursement. But you will also have to keep the gadget’s bill and serial number, as both will be required while filing the claim. File an FIR or LIR within 24 hours of the loss or theft.  Then file the claim with claim information and LIR within 48 hours. Generally, insurance companies close the issue and credit the amount within 3 to 7 days of submitting the claim, subject to fulfillment of all the criteria. You must read the claim procedure and reviews about it before purchasing any policy.

Read more: Cover the uncertain ties! How does job insurance policy act as a cushion during job loss?

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