Chennai, March 12: India’s leading non-life insurer New India Assurance Co Ltd is upbeat about offering insurance protection to mobile handsets sold at Nokia retail outlets.
New India and Nokia India have entered into a tie-up whereby mobile phone buyers at Nokia outlets in 10 cities can buy an insurance policy to cover against risks like theft, burglary and accidental damage.
“The handset buyer has an option to buy or not buy insurance protection,” said Segar Sampathkumar, general manager at New India.
“We explain the claims procedure and (say what) documents (are) needed upfront so there will not be any impact on our brand image,” Sampathkumar told IANS.
He declined to share any numbers on expected premium income.
He said the claims formality had been relaxed and the company was not insisting on submission of a first information report (FIR) and non-traceable certificate (NTC) from police if the insured mobile handset is lost due to burglary or theft.
“A claimant has to lodge a police complaint and submit a proof of entry in the police diary. The claimant has to intimate the network service provider and get an acknowledgment,” Sampathkumar added.
He said New India hopes to settle the claims in five days and has tied up with Universal Insurance Broker, which for Rs.50 will pick up and drop the handsets for servicing or documents in case of theft/burglary.
The premium for insurance coverage is 1.25 percent of the purchase value of the handset or Rs.50 whichever is higher. The insurance cover is valid for one year.
An official of a private non-life insurer told IANS: “We don’t go for such business as it is highly loss making. Administering the claim is a headache. Getting even an acknowledgement from police will be a tough task and ultimately they will blame the insurer.”
Sampathkumar said the rate of depreciation depends on the age of the equipment.
For handsets less than three months old, the depreciation is 10 percent, for handsets between three and six months it is 25 percent and for others 50 percent.