Everything You Need to Know Before Buying A Mobile/Gadget Insurance

Having an expensive gadget keeps someone in an unnecessary phobia of losing his/her precious electronic gadget. Usually, with new electronic gadgets, customers get one-year free warranty for manufacturing defects and software related issues. But, such warranties do not cover liquid/accidental damages so to insure an electronic gadget against theft, burglary, liquid/accidental damage people prefer to buy a separate gadget insurance policy. A majority of people buy gadget insurance without knowing the actual terms and conditions. In such scenarios, people waste their money on buying worthless insurance policies, which would have very sophisticated claiming procedures and would have very huge depreciations. It is indeed a smart decision to insure a gadget(usually for expensive gadgets) but if you buy an insurance policy without knowing the various types of deductions such as; claim fees, depreciation for repair or full claims, service charges etc then it could alter your decision.

To create awareness among customers, we have come with this post, which will show you the main parameters to be considered before choosing a mobile/gadget insurance provider. This post would help you opt best insurer (See:  6 Leading Mobile / Gadget Insurance Companies In India | Mobile Insurance In India).
Gadget Insurance
Disclaimer: The information and benefits provided herein are for informational purpose only. Please do not take it as a legal advice.

Service Cover Starting Procedure

First and the foremost thing is to know that Is there any service cover starting procedure or not? Usually, your service cover starts within 24-48 hrs after buying insurance for your gadget; but in some cases you have to follow an activation procedure to start your insurance cover. If you don’t follow that then you would not be eligible for any type of claim, whether you have paid your policy premium. So ask your insurance provider about that.

Insurance Validity & Maximum Claims

While buying an insurance policy for your valuable gadget; don’t forget to see the validity and maximum claims allowed throughout insurance cover. Insurance companies give 6 months to 2 years validity for mobile/gadget insurance; so it would be good for you to see validity of your insurance. Another factor to consider before choosing an insurance provider is maximum number of claims allowed throughout the policy cover. Companies do not give you unlimited claims for your gadget insurance; therefore, find out how many claims you can file?


There are some predefined circumstances, in which if you lost your gadget then no compensation will be given to you. In certain cases of damage and lost; your insurer is not liable to pay any claim to you. Here are some main exclusions.
Note: Exclusions varies from companies to companies.
  • If you do not inform your insurer about your lost property within the specified time.
  • Time of loss not within the policy tenure for example; usually, your policy starts within 24-48 hours; if you lost your device before starting time of the policy then no claim will be given to you.
  • Damage caused by war, riot, nuclear attack etc.
  • No claim for covers, headsets, chargers.
  • Damage caused by explosion of  battery.
  • Damaged caused by physical activities, where risk of damage is increased for example; swimming, skydiving, scuba diving etc.
  • Any mysterious disappearance other than theft.
  • Software problems or damage related to camera.
  • Theft or Damage arising outside India.


If you lost your device then the value of your lost gadget will be determined by its current market price. After determining its current market value, you will be get paid after depreciation. Percentage of depreciation varies companies to companies. Some companies provide compensation equivalent to the cost of your lost device. Here is an approximate depreciation chart;
Age of Mobile as on date of Loss
% of depreciation
Up to 6 Months
6month-1 year
1yr- up to 2yrs
2yrs to up to 3 yrs

Service Charges

Some companies provide a cashless service to their customers and some charge fee to provide services related to their policy for example; claim processing fee, service charges (for repair) etc. Service and claiming procedure should be free of cost.

Claim Procedure and Time Limit

Usually, customers have to intimate insurer about the loss within the specified time; if you do not inform him within the time limit then your insurer may refuse your claim. Here are the steps of claim;

  • Inform your insurer about the loss by email, SMS, call and ask him about claim procedure.
  • Download claim form from your insurer website.
  • Fill out a declaration form.
  • Attach a copy of original purchase invoice.
  • Copy of FIR (First Information Report) containing device detail and incident of loss or theft.
  • A copy of your address proof.
  • Claim processing fee proof (demand draft, online payment proof etc). (If any)
  • Courier all documents on specified address.

Is this policy transferable?

Time to time, we change our gadgets; therefore it would be good for you if your policy is transferable. Transferable gadget insurance policy allows customers to transfer their old gadget insurance policy to new one.


To attract customers insurance companies give a bunch of free applications to new customers for example; Pocket Money, Your Movies, Ditto TV, Live TV, Movies, Videos, Hungama: Free Songs&Videos, Magzter- News and Magazines, Games and Complimentary Games etc. Therefore, it would be good for you; if your insurer is giving you such free applications.

Insuring a device indeed a good decision but you have to be very careful while purchasing an insurance policy for your precious gadget. Never buy an insurance policy for your device without reading terms and conditions of that policy. To find a best insurer for your gadget, first make a list of your favorite insurers (See: 6 Leading Mobile / Gadget Insurance Companies In India | Mobile Insurance In India) and then compare services and facilities offered by them. Read online reviews; these can help you opt best insurer. Never go with only one review website read reviews from different websites.

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