PROCEDURE FOR ISSUE OF POLICY:
A master policy would be issued in the name of Service Provider for a period of 12 months and the policy will cover all cellular phones sold by Service sold by Service Provider during the said period of 12 months either directly or through their dealers. The coverage in respect of each cellular phone shall be for a period of 12 months from the date of sale. The purchaser of the cellular phone (the Insured person) shall be issued a Certificate of Insurance by Service Provider.
Monthly declaration of cellular phones sold shall be submitted to the insurers before the end of the succeeding month in the prescribed format and the premium payable thereon should be remitted while submitting the declarations. A deposit premium equal to premium payable on estimated sales for a period of three months shall be paid to the insurers at the time of inception of the master policy. This is to take care of the requirement of the Insurance Act, 1938 which stipulates that no risk can be assumed by an Insurer before collecting the premium.
The master policy can be renewed at the end of every 12 months by mutual agreement between the insurers and service provider. However, the procedure for issuance of policy can be worked out between insured and service provider.
INDEMNITY:
The insurers liability for each insured cellular phone shall not exceed in the aggregate in any annual period of insurance, the sum insured against such cellular phone. In the event of any loss or damage to the cellular phone during the first 12 months from the date of purchase, necessitating replacement of the instrument the insurers would pay the cost of replacement of the cellular phone subject to the maximum of the sum insured.
If the damage is partial and can be repaired, the insurers shall pay the cost of repairs without deducting any depreciation on parts replaced. For loss or damage during the subsequent periods of insurance beyond the first 12 months, the cost of replacement or repair would be paid as the case may be subject to deduction for depreciation as per the following scale:
During second year 10%
During third year 20%
During fourth year 30%
During fifth year 40%
During sixth year and beyond 50%
In respect of new handsets (upto 12 months from the date of purchase) the sum insured shall be equal to the cost of replacement of the instrument by new instrument of the same specification and same capacity including customs duty and other levies as applicable.
UNDER INSURANCE:
If at the time of loss or damage the sum insured is less than the insurable value as specified above, the insurers will pay the claim only in such proportion as the sum insured for the damaged item bears to the insurable value.
PREMIUM:
The premium payable shall be 0.75% on the value of the handset plus Rs.50 towards coverage of misuse of the instrument. The premium payable shall be subject to a discount of 15% and on the net premium a service tax @ 5% is leviable Depending upon the number of instruments covered during the policy period, a volume discount will be allowed as per the scale shown below. Adjustment of volume discount shall be done only at the end of the policy period.
Upto 25 Instruments Nil
26 to 50 Instruments 5% of total premium
51 to 100 Instruments 10% of total premium
101 to 300 Instruments 15% of total premium
301 to 500 Instruments 20% of total premium
501 to 3000 Instruments 25% of total premium
3001 to 10000 Instruments 30% of total premium
10001 to 50000 Instruments 35% of total premium
50001 and above Instruments 40% of total premium
COVERAGE:
The proposed insurance policy offers the following types of coverage:
i) Fire
ii) Riot, Strike, Malicious damage, Terrorist activity.
Iii) Theft
Accident
Fortuitous circumstances in the knowledge of the insured person
Loss arising out of fraudulent use of the cellular phone following the physical loss or damage to the cellular phone where such loss is total loss for a time limit of 24 hours from the time of recording by the cellular operator of the first fraudulent call subject to a maximum limit of Rs.5,000/- for any one loss or series of losses in any one period of insurance.
EXLUSIONS:
The following types of loss or damage would not be covered by this proposed insurance.
Loss or damage due to operation of war and nuclear perils.
Loss of the cellular phone due to theft or damage to the cellular phone due to attempted theft from any unattended vehicle except car of fully enclosed saloon type having at the time all the doors, windows and other openings securely locked and properly fastened.
Loss or damage caused by intentional act or willful neglect of the insured person.
Loss or damage due to intentional overloading of the cellular phone or experiments involving the imposition of any abnormal conditions on the cellular phone.
Loss or damage caused by wear and tear, moth, vermin, atmospheric or climatic conditions or gradual deterioration, inherent defect or from any process of cleaning, repairing, renovation or maintenance.
Loss or damage resulting from delay, detention or confiscation by customs or other Government or Public authorities.
Loss or damage due to mechanical or electrical breakdown or derangement.
Theft, loss or damage during the hire or loan of the cellular phone to a third party.
Any loss or damage occasioned by water or damage excess occasioned from any water borne craft.
Mysterious disappearance of the cellular phone.
EXCESS:
An amount equal to 2.5% of the sum insured or Rs.500/- whichever is higher is to be borne by the insured person out of each and every claim.
GEOGRAPHICAL LIMITS:
The insurance would be operative within the geographical limits of Indian Union.
CLAIM PROCEDURE:
In the event of any loss or damage immediate intimate should be given by the insured person to service provider and to the insurers. If the loss or damage is due to theft, riot, strike, malicious act or due to terrorist activity, complaint must be lodged with the police authorities and a copy of FIR is to be furnished.
The claim form should be completed and signed by the Insured Person and counter signed by an authorised official of service provider. The insurers would nominate three or four independent surveyors whose services may be utilized by service provider for loss assessment.
The insurers undertake to settle the claim within 15 days from the date of receipt of the completed claim form, survey report and other claim documents from service provider / individual insured. The claim amount shall be disbursed to service provider / individual insured whose receipt and discharge shall be binding upon the insured person.
Upon settlement of the claim the instrument or its component or components in respect of which the payment is made becomes the property of the insurers and shall be handed over to them. Alternatively, the agreed value of the damaged instrument or components may be reduced from the claim amount.
NOTE:
This note is only guideline for issuance of policy and claim settlement indemnity. The Regional Office can workout the detailed procedures in consultation with Service Provider provided there is no violation of Sec.64 VB and/or dilution of claim settlement requirements as mentioned in the policy.