Choose the right insurance policy to keep your phone ringing even if you change your number
The recent warning by the office of the Ombudsman for Short-Term Insurance (OSTI) that consumers could find their cellphone insurance claim rejected if they changed their number, has emphasized the fact that ‘not all insurance policies are created equal’ and that short-term policy should be examined before they are accepted, says Old Mutual Insure’s insurance expert.
The warning by Ayanda Mazwi, a senior assistant Ombudsman that simply changing a telephone number (through number porting) could invalidate a claim for the damage, loss or theft of a phone has emphasised that it is more important than ever before to know your rights, says Christelle Colman, Insurance Expert at Old Mutual Insure.
“It is common for people buying new cell phones to be offered insurance as part of a package. Most people faced with a mass of paperwork at the purchase point often accept the offer without checking what they are signing up for. It is only later when a phone is lost or stolen that many are shocked to find that because they have changed their numbers or acquired a new SIM card that their claims are invalid,” Colman says
“The onus in these cases lies on the phone’s owner to notify the insurance company if the phone’s owner obtains a new SIM card or changes a cell’s number. If this is not done, claims can be rejected. Old Mutual Insure, in contrast to many other insurance providers, bases insurance coverage on the EMI and serial numbers that are unique to each phone. It is, therefore, immaterial whether a number has changed or if a new SIM card has been inserted in the phone. As long as the phone identified in the policy is the subject of the claim, the claim will be considered and settled.” Colman continues.
“It is vital that consumers understand that they do not have to accept an insurance policy offered to them when they buy phones. Everyone has the right to arrange their insurance. Making sure that you are getting the right deal and that you are not caught unawares by clauses within a policy is, however, your responsibility. Taking the time to read a policy, to ask about sections that you don’t understand and get clarity on potential issues may delay a purchase for a few minutes. When a claim is lodged and is honored, the decision to proceed carefully will be vindicated,” concludes Colman.
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