Insurance for expensive gadgets seems a sensible proposition. They are very economical, and the value of the perceived safety net that an insurance policy provides is immense. But before you go in for one, there are various factors and clauses to consider. Here are some aspects that could help you make an informed decision:

Usually, insurance options are available at the store in which the gadgets are purchased. If there is such an option, check all the details before you sign up – are technical faults, physical damage and theft covered? If so, what is the amount of cover? What conditions apply?

In the case of physical damage, you will need to prove that the damage was accidental. Check the insurance policy offered to find out how difficult they have made the process of proving.

Most policies cover theft of the gadget, but this cover comes with many strings attached. Chiefly, the insurance will be provided only along with a copy of the First Information Report (FIR) filed at a police station. There is also usually a time limit for submitting claims. Both these are catches. Most often, police stations will refuse to accept an FIR; instead, they will issue an MIR or a ‘missing report’. This the insurance companies will not accept. Also, the time-frame for submitting a claim in the event of theft is a mere 48 hours. This is a very challenging window, to say the least – the FIR has to be filed, a copy obtained, a copy of the purchase bill taken, and a claim submitted within the timeframe.

Further, if the gadget was stolen from an unattended vehicle or some similar circumstance, insurance companies will usually view it as a case of negligence, and will not pay up.

Claims are also subject to depreciation rules, ranging from zero to 50%, but seldom will the zero depreciation rule be applicable.


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