Mobile Theft Insurance: What’s Covered, What’s Not

Can you be covered by insurance if your mobile phone is stolen? You can, but it may not be covered if you have misplaced it. We take a look.

What Falls Under Mobile Theft 

Theft as defined in Section 378 of the Indian Penal Code shall mean whoever, intending to take dishonestly any movable insured asset out of the possession of any person without that person's consent (within the geographic limits under the policy), moves that insured asset in order to such taking, is said to commit theft.

In easy words, theft under a mobile insurance policy is usually defined as the forceful taking of a mobile device, such as robbery, break-in, or snatching, or the unlawful taking of a device. “There are some exclusions to this as well, such as pickpocketing (where the phone is taken without force), accidental loss, misplacement, or loss of the phone due to the policyholder's negligence,” says Amarnath Saxena, Chief Technical Officer – commercial, Bajaj General Insurance. Additionally, documentation is equally important in such cases. Claims without proper documentation are also not admissible.

Essentially, all burglary policies cover property stolen through force or unlawful entry. “Theft from a locked premises is covered in most policies. Also, robbery with threat or violence is covered under most policies. Some comprehensive plans may cover theft by pickpocketing or snatching in public places,” says Arti Mulik, Chief Technical Officer, Universal Sompo General Insurance.

Importance Of Mandatory Documents 

Any phone theft claim requires to be supported by some mandatory documents like a First Information Report (FIR), International Mobile Equipment Identity (IMEI) number, proof of purchase, etc. When such documents are not received or they are erroneous, the claim cannot be assessed and hence may result in rejections. “Reporting of the theft incident within the prescribed timelines to the authority and the insurer is also an important determinant of claim success. Insurers also appoint surveyors to assess the exact incident; this report plays a major role in the acceptance of the claim,” says Mulik. 

“Lack of proof, late reporting, insufficient coverage, or an act not covered under the policy, such as pickpocketing, could be primary reasons for rejection of a claim,” says Saxena.

Mobile Insurance Products Available In The Market 

“Different distributors have different kinds of bundled products; for example, banks may bundle a theft cover on credit/debit cards through which purchases are made, Original Equipment Manufacturers (OEMs) may provide theft cover along with warranty or extended warranty covers, and telecom operators may provide some form of theft cover along with subscription packages,” says Mulik.

In all cases, it is recommended to check the conditions of coverage and follow through with the process of claims reporting and providing all relevant records and documents required as per the process; this will ensure that the claims are accepted and the protection remains effective.