Can you imagine spending a day without your mobile phone? For many, this would sound like the premise of a horror movie you don’t want to be stuck in. Losing a mobile phone or damaging it irreversibly is both possible and inconvenient. And, during moments like these, most people invariably wish they had insured their phone. Yes, your phone and other gadgets can be insured. Chances are that your e-retailer or store sales executive even suggested getting insurance along with the device in question. Because, much like health and life insurance, gadget insurance is your means of protection in a worst-case scenario.
The global gadget insurance market recorded $59.4 billion in 2021. A ten year-projection estimates a market value of $193.5 billion market value.
The numbers, however, are more modest in India. As per Mordor Intelligence, only 7% of gadget owners have gadget insurance. Meanwhile, 16% of personal mobile phone users own device insurance in the country.
Before you decide whether you should invest in gadget insurance, let us delve deep into what it is and its scope.
What is gadget insurance?
India is one of the largest electronic markets in the world, with FY22 recording a production output of five trillion Indian rupees.
As per India Brand Equity Foundation, India’s smartphone market revenue alone crossed US$ 38 billion in 2021. Meanwhile, India’s headset market revenue is expected to reach US$ 77 million by 2027.
The numbers indicate that Indians are not shying away from spending big money on their favourite gadgets. But big investments are often accompanied by significant risks. And risks are of various kinds when it comes to gadgets. One can either damage their device or lose it to theft. Mechanical damage and international component malfunction are potential dangers that gadget owners should consider. In such scenarios, gadget insurance offers protection and grants monetary compensation in line with your chosen policy. Like any other insurance plan, gadget insurance covers the risk.
Consider a situation where you bought a gadget just a few days before it was rendered unusable. Even worse, you purchased it on an EMI plan and are now left with no option but to pay a monthly instalment for a defunct device. In this situation, an active insurance plan will kick into action. You will be granted a sum based on your premium to help you avoid high replacement costs.
What goes gadget insurance cover?
Gadget insurance can be tailored to suit your needs, depending on your chosen policy provider. Much like other forms of insurance, the scope of what a gadget insurance covers differs with every policy. According to a report by Grandview Research, most policy providers offer cover for a range of incidents such as physical damage, theft and loss, virus and protection, and mechanical failure. A report by Allied Market Research noted that you could also extend gadget insurance to cover issues such as malicious damage, unauthorised use and e-wallet payments.
Depending upon your policy type and premium, certain insurance providers may also allow you to customise your insurance coverage based on your needs. So, the key is to choose insurance that aligns with your requirements.
It is also essential to purchase the insurance within a specific timeframe. This timeframe is subjective based on the gadget type and scope of the policy. Some insurance providers may need you to invest in the insurance alongside purchasing the gadget itself. Others may require you to buy the insurance within a stipulated period from the time of purchase of the device.
Do you really need to insure your gadgets?
A study by U.S-based gadget accessories company Kensington cited that every 53 seconds, one laptop is stolen. Each year, nearly 70 million smartphones are lost. Recovery is recorded only for 7% of these gadgets. When it comes to workplace statistics too, the number is just as staggering. Over 52% of devices are stolen from offices or workplaces every year. Around 4.3% of company-issued smartphones are stolen or misplaced every year. When it comes to lost or stolen laptops, data breaches alone can account for 80% of the cost of the device.
Here’s the golden rule: Insurance is always a good idea. The adage “better to be safe than sorry” holds for your favourite gadgets. Given the range of policy providers, you can find a plan that suits your spending capacity, gadget type, and requirements.