Laptop Insurance: Complete Guide on Coverage, Claims, Exclusions

In today’s modern time, computers dominate almost everything that you do. Digitisation has become so important in today’s age and businesses and companies run on technology. Computers and laptops have, therefore, become quintessential for completing your work. These gadgets are quite expensive and if they are damaged you incur quite a substantial loss. Though the gadgets are expensive, they are quite easily damaged. Mishandling related damages, theft, short circuits, damage due to liquid spillage, etc. are some of the common causes which damage your laptops. Can you insure these damages?

Actually, you can. There are laptop insurance policies available in the market which cover the damages suffered by your laptop. Let’s understand what the policy is all about.

What is laptop insurance?

Laptop insurance is a general insurance policy which covers the damages suffered by your laptop due to specified perils, i.e. events that cause a financial loss. If your laptop is damaged due to the covered perils, the insurance policy would cover the cost of repairs that you incur.

Why you should buy laptop insurance?

A laptop insurance policy proves beneficial because of the following reasons –

• The policy covers even those damages which are not covered under the laptop’s warranty
• You get financial assistance in case of damages suffered by your laptop. This assistance helps you to get the laptop repaired properly
• If the laptop is stolen you get the sum insured which helps you buy a new laptop without a financial pinch

What is covered under laptop insurance?

Damages to the laptop due to the following contingencies are covered under laptop insurance plans –

• Cracks or damages to the laptop screen
• Electrical or mechanical breakdown
• Theft or burglary of the laptop
• Loss of the laptop
• Any type of accidental damage suffered by the laptop
• Damage due to liquid spillage or seepage
• Faulty laptop battery or loose port
• Failure or error in the RAM of the laptop
• Burn out of the LCD
• Crash of the hard drive of the laptop

What is not covered under laptop insurance?

There are some instances that are not covered under laptop insurance policies. If you make a claim for these instances, the claim would be rejected. Instances include the following –

• War, riots, terrorism and related perils and the damages that they cause
• Damages due to wilful negligence of the policyholder or any other individual using the laptop
• Any pre-existing defects which were in the laptop before laptop insurance was bought
• The natural wear and tear of the laptop due to usage and depreciation
• Damage to the laptop due to climatic conditions
• Normal maintenance charges incurred on the laptop

How does laptop insurance work?

If you own a laptop you can buy a laptop insurance policy to cover the risks of damage. To buy the policy you would have to approach an insurance company which offers laptop insurance. Understand the coverage benefits and exclusions and then buy the policy by paying the premium charged. The company would assess the proposal for insurance and would accept or reject your proposal. If the policy is accepted you would be given laptop insurance coverage and the company would promise to pay for the damages specifically covered under the plan.

Eligibility parameters for buying laptop insurance

To buy a laptop insurance plan you should be the legal owner of the laptop. The laptop can be purchased in India or imported from an international country through proper import channel. You would have to submit the bill of purchase when buying the insurance policy.

How to make a claim under the laptop insurance policy?

To make a claim in your laptop insurance policy, you should follow the below-mentioned steps

• The first and the most important step of a claim under your laptop insurance policy is intimating the insurance company. Once your laptop is damaged and the damage is covered under the policy, call up the claim department of the insurance company and inform them about the claim. The insurance company would register your claim and give you a claim reference numbe which you should keep at your disposal during the claim process
•  If your laptop has been stolen, a police FIR is a must. File an FIR and make copies of it as they would be required with the claim documents
• Once the company is informed, the company can engage a surveyor to assess the damages suffered
• Alternatively, the company might direct you to send the damaged laptop to the nearest service centre which is authorised by the insurance company to assess the damages
• The claim related documents should be submitted to the insurance company quickly for a quick settlement
• Once the damages have been assessed by the company appointed surveyor or service centre, a claim report would be prepared to estimate the amount of claim
• Based on the claim report, the laptop would be repaired
• The claim would then be paid by the insurance company. In case of cashless repairs, the claim is directly settled by the company with the service centre. In case of theft or reimbursement claims the company would credit the claim amount directly to your bank account

Documents required for laptop insurance claims

As mentioned in the claim process, you are required to furnish a complete set of documents for your claims to be processed. These documents include the following –

• Claim form which should be filled in and signed by the policyholder
• Photo of the damaged laptop along with the serial number
• Proof of identification of the individual who bought the laptop
• Police FIR in case of theft claims
• If you own an Apple laptop, you would also have to submit a photo of disabled function of ‘Find my Mac’, i.e. when your “find my Mac” command is not working on your MacBook.

Companies offering laptop insurance

In India, only a few insurance companies offer laptop insurance. These are as follows –

Things to remember

Before you buy a laptop insurance policy, here are some aspects of the policy which you should remember

• The premium of the policy would depend on the coverage features and the cost of your laptop. The more inclusive the coverage benefits the higher would be the premium. Similarly, if the laptop has a higher value, the premiums would be high
• The exact coverage benefits depend on the insurance company. you should, therefore, read the coverage features before buying the policy
• Always compare laptop insurance plans offered by different companies before you buy. Comparing would give you a policy which has the best coverage benefits at the lowest premium rates
• Add-ons are also available with laptop insurance plans which enhance the scope of coverage. Common add-ons include the cost of air transport if you are buying the laptop internationally, coverage for the cost of customs duty, etc.

Laptops are expensive gadgets and damages might involve substantial financial costs. Moreover, warranties are applicable only for a specified period after which you are required to pay for the repair costs of your laptops. A laptop insurance policy comes in handy in covering the damages suffered by the laptop. The policy provides a good scope of coverage along with the option of customising the coverage with add-ons. So, if you own a laptop, buy a laptop insurance policy and secure the costs faced in case of damage or theft.

FAQ’s

1. What is the tenure for laptop insurance policies?
   Usually, laptop insurance plans come for a period of one year. However, some companies also offer longer coverage durations.
2. Are there any discounts on laptop insurance plans?
   Yes, many plans offer you a premium discount if you buy a long term policy or if no claims are made in a policy year.
3. What is the limit on the number of claims which I can make in a policy year?
   The limit on claims depends on the insurance company offering the laptop insurance plan. Some companies keep a maximum limit to the number of claims while in some companies there is no limit to the number of times you can claim.
4. What would happen if my laptop is completely damaged?
   In case the laptop is completely damaged where the cost of the repair exceeds 75% of the sum insured of the policy or the invoice value of the laptop, the claim is made on a Beyond Economic Repair (BER) basis. In that case, you get the sum insured after deducting the scrap value of your laptop.