Last updated on April 6, 2020
With a continuous drive for modernisation, India’s consumer electronics market has evolved as one of the largest contributors to the nation’s GDP in recent years. Experts are projecting a CAGR for this industry touching almost 12% till the financial year 2025, with user penetration to almost 46.6% of all the nation’s citizens by the end of 2024.
Such massive growth of consumer electronics and gadget market has given birth to several ancillary industries. Depending on the requirement of the users, today’s market offers everything from aftermarket repairs to comprehensive gadget insurance plans that protect these valuables from unintentional damages.
What is an insurance policy for small gadgets?
A small gadget insurance policy is a financial product that offers coverage against any monetary loss witnessed to repair or refurbish gadgets that are accidentally damaged. These plans usually include electronics like Bluetooth speakers, smart speakers, power banks, digital clocks, humidifiers, portable vacuum cleaners, etc.
There are several insurance aggregators that offer these types of insurance policies. For example, Bajaj Finserv offers small gadgets insurance plan under Pocket Insurance & Subscriptions which is one such product that provides comprehensive coverage against damages caused during several unfortunate scenarios. Policyholders can enjoy insurance coverage of up to Rs.10,000 against a premium of only Rs.399.
However, with diverse options available in today’s market, prospective customers should be well aware of the extent of the coverage as well as other benefits before they apply for a small gadget insurance policy from a particular insurance aggregator. Take a look at some of the most important things to consider while choosing such an insurance policy.
Aspects to consider while selecting a gadget protection plan
- Sum insured
One of the very first things a prospective customer should consider a small gadget insurance policy is the total sum insured. It is the maximum amount that a financial institution disburses against a customer’s claim. Inadequate sum insured can create a financial strain on an individual’s budget.
- Claim settlement ratio
It is best to select an insurance aggregator that has a higher claim settlement ratio, as they are more likely to process and disburse the claim amount without any issue once a request is filed.
Customers should also consider the claim lodging process of a small gadget insurance policy; financial institutions usually offer a certain time frame (24 to 48 hours after the incident) within which a claim can be successfully lodged.
- Age of the gadget
Insurance aggregators usually extend a small gadget insurance policy to newly purchased electronics only. Applicants should check their preferred financial institution’s regulation regarding the purchase date of a particular gadget before selecting a plan.
Similarly, they should also consider whether they can buy add-on plans to extend the coverage or not. For example, along with an insurance plan for gadgets, one can purchase an electronic stationery insurance policy to financially safeguard scanners, printer, photocopiers, etc. against accidental damage.
- Deductibles
Deductibles are levied upon the claimed amount, calculated depending on the sum insured of that particular policy. Customers should consider this before purchasing a small gadget insurance policy, as it can affect the total disbursed sum.
- Extent of coverage
The best insurance plan should offer financial coverage against any expenses incurred while repairing damages sustained from man-made or natural scenarios, unexpected mechanical breakdown, or accidental damage. Customer should consider this factor in advance to reap maximum benefit from a particular policy.
The above-mentioned aspects are some of the most essential factors one should check while purchasing insurance for small gadgets. Additionally, they can also consider a wireless headphones insurance policy to keep such electronics financially protected.
