Mobile Protection Plan: What Is Covered With A Mobile Insurance Plan?

On an average, 66 mobile phones are stolen each day in Mumbai local trains as per recent data received from 17 Government Railway Police (GRP) stations. In 2019, more than 24,000 mobile phone thefts were reported in these police stations.

The total valuation of the lost mobile phones is estimated to be Rs.2.99 crore as per the same data release.

  • The recovery rate for stolen phones was minuscule at less than 10% in that year.  

As such, investing in a mobile protection plan becomes crucial, especially for those commuting in public transport. Not only for coverage against theft but these policies also provide financial protection against several other mishaps and damages.

Some of these include – 

  • Damages caused accidentally

Accidental damages are one of the primary reasons that create a substantial financial obligation for smartphone owners. For a majority of the time, it’s the phone’s display that gets damaged accidentally.

  • Screen damages account for 71% of all mobile repairs, as per a recent report. 

Smartphone owners prefer to go for display replacement from an authorised service centre for original spares and limited warranty on the same. Several companies have, however, emerged in recent times that offer doorstep mobile repairing facilities.

Whatever the option may be, customers have to pay a substantial amount to replace a damaged display.

  • The replacement cost of a damaged screen can be around 23% of a smartphone’s price.

As such, individuals can opt for mobile insurance in India to financially protect themselves against the expenses incurred for broken display replacement.

Bajaj Finserv provides Mobile Screen Insurance policy under their Pocket Insurance & Subscriptions. This plan provides coverage of up to Rs.10,000 against a nominal annual premium.

  • Mechanical and electrical breakdown

Smartphone owners will also be able to avail reimbursements against expenses incurred to repair malfunctions caused by mechanical and electrical breakdown.

Such breakdowns generally lead to a damaged motherboard, the repair cost for which is higher than a display.

  • Cost of repairing a motherboard can be around 39% of the smartphone’s price.

Hence, purchasing a mobile protection plan is necessary, especially if the concerned device is a premium one.

Customers can also opt for a mobile charger insurance plan to receive financial coverage against mechanical and electrical breakdowns of the same.

  • Damages caused due to fire and other perils

Repair or replacement costs arising out of damages caused by fire, explosion, lightning, riots, strikes, natural calamities (cyclone, earthquake, flood, etc.), etc. are also covered by mobile phone insurance in India.

Availing an electronic stationary insurance policy will also enable customers to receive financial protection against these perils. This plan can be availed for photocopiers, printers, scanners, etc.

  • Damages arising out of a robbery or burglary

Mobile protection plans like screen insurance policies also offer coverage for damages caused to the smartphone’s display owing to a robbery or burglary at the owner’s premises. 

Warranty vs mobile insurance in India

Smartphones come with a standard warranty of 12 months, which provides coverage only against malfunctions and manufacturing defects. However, accidental damage and theft are not covered under warranties.

Buyers can also purchase an extended warranty, which provides protection against mechanical or electrical breakdown and accidental damages. However, extended warranties do not usually cover theft, and also, cannot be renewed.

A mobile insurance company does not offer products with such limitations. Smartphone owners will be able to avail the policy’s coverage as long as they renew the plan. 

Individuals can buy mobile insurance online by paying the premium via different payment modes. However, they must do so within 30 days of purchasing the smartphone.

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