Asset Insurance: Common Risks to Your Assets and How to Stay Protected

Any product or device you purchase does face certain risks of damage or destruction. These risks can lead to losses too heavy to bear. Read on to know those risks and how to stay protected.

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Asset protection insurance is a relatively lesser known insurance product. That, however, does not diminish the importance of this form of coverage. Asset insurance can provide much-needed protection to costly assets such as a cell phone, tablet, DSLR camera, or even laptop.

And, as we all know, these devices can cost a pretty penny. Whether you are a business owner looking for coverage for company assets or an individual seeking protection for personal devices, asset insurance can truly give you peace of mind.

Is asset protection really necessary?

Yes, it is. Any product or device you purchase does face certain risks of damage or destruction. If you were fortunate enough to use your device for the entirety of its value, you might not feel too much of a pinch. Yet, that rarely happens. In the fast-paced world that we live in, there are several risks facing us and our assets on an almost daily basis.

These risks can lead to losses too heavy to bear. After all, you only just purchased that cell phone and now, you have to buy another one because it got stolen last evening in the train.

But is theft the only risk to your assets? Not at all, there are many more.

Let’s take a look.

Common risks to your assets

Apart from the ever-present danger of robbery, your assets are also at risk due to:

  • Voltage fluctuations

Voltage fluctuations and constant power failure can cause damage to electronic appliances. Your device data may get corrupted or your household appliances may fail due to internal damages resulting from power fluctuations.

  • Accidental damage

Almost all of us have experienced those antagonizing few seconds of despair upon dropping a cell phone. A dropped device can crack or worse, stop functioning completely.

  • Liquid damage

Travelling with your laptop or cell phone in the monsoons? Your device is exposed to risk of dropping into the rain water moisture and the possibility of water damage or accidental dropping of asset into other liquid that can completely see its electrical system malfunction due to ingress of liquid..

  • Cyber crime

Cyber crime is on the rise these days. A weak firewall on your system can leave your computer data exposed to hackers who could steal valuable information from you.

  • Natural disasters

A fire or an earthquake can inevitably cause costly damages to your property and its contents. In such a situation, you would barely be able to salvage your devices and home appliances.

  • Advancements in technology

New updates and software are designed to fight bugs and make life easier. However, sometimes, they can render an old device useless if this device runs on technology that does not support the new operating systems.

  • Wear and tear

Home appliances and assets such as cell phones undergo the natural process of deterioration too. The process of aging can leave a device unusable in more ways than one and ultimately necessitate that you buy a replacement.

As we can see, a lot of the aforementioned risks are out of our hands. No matter how careful you are, things can go awry. If and when the unforeseen happens, you want to stay protected. Asset insurance can help you do just that.

So, how does asset protection insurance help you?

Asset protection insurance covers your assets against a range of natural and man-made calamities that can see you suffer from losses.

With this form of insurance your insured asset stays protected against screen damage (for products with a digital screen), accidental liquid ingression leading to damage, burglary, damages due to fire and act of God perils.

Insurers also generally include coverage for electrical or mechanical breakdown due to manufacturing defects in the insured device or appliance by providing extended warranty..

In the event of total loss or BER ( Beyond Economical Repair) suffered by the policyholder, the insurance company generally pays out the market value or invoice value or reimbursement value as agreed upon in the policy terms. whichever is lower, after charging the depreciation and excess charges as per the depreciation chart in policy and in no case will be more than the coverage amount.

In some cases, you may even receive a replacement product of the same value or specification. For instance, you may file a claim for total loss if your insured tablet has been robbed from you.

You may then get a replacement device of similar value or get reimbursed for the cost of the tablet, subject to depreciation as per policy.

If the insured product has undergone partial loss, the insurer will bear any expenses relating to the repair of the product as per the terms of the policy.

For instance, if you drop your insured cell phone and the digital screen cracks, you may file a claim for partial loss requiring repair of the device.

This kind of coverage can truly save you a lot of money. The cost of replacing your smartphone screen can often run in several thousand rupees; it is simply more cost effective to buy asset protection insurance and let your insurer take care of the damages.

Filing a claim

Here is a quick look at the process of filing a claim in asset protection insurance.

Step 1: Contact your insurer as soon as you notice the damage or loss that qualifies for a claim. Most insurance providers maintain a deadline for initial intimation.

Step 2: If the product has only been partially damaged, collect it as carefully as possible to prevent any further loss. In case of theft, make sure to lodge a complaint as soon as possible with the police.

Step 3: Collect the documents required to support your claim. Your insurer may generally need you to submit a copy of the FIR (if applicable to theft and for forcefully taken away of device), completed claim form, estimate of losses and repair costs, and purchase invoices.

Step 4: Submit the duly filled claim form with supporting documents to your insurer. Your claim should ideally be settled within 30 business days of receipt of paperwork sent in by you. It’s really that simple!

Quick tip: Do bear in mind that the claim settlement process and documentation required may vary slightly between insurance companies. It is always advisable to contact your insurer prior to filing a claim and ask them to guide you through their process.

Below is some important information related to the device for activating Insurance cover:

  • Customer Name
  • IMEI or Sr. no.
  • Make and model of the device
  • Purchase Invoice value
  • Purchase Invoice date
  • Email ID
  • Contact Number.
  • Condition of device

We hope that this article has helped improve your understanding of asset protection insurance.

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Navi General Insurance Limited
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