Extended Warranty Insurance: While buying any item, the customer expects that there will be no worries or problems related to its use and for this the customer ensures his warranty from the company or retailer. Companies offer specially designed Extended Warranty Insurance plans to provide additional protection against manufacturing defects of their items, giving the customer the option to extend the warranty cover for additional years. When you buy an item, the employees of that company work hard to sell you a service plan to increase the security of the item. Such plans are also known as extended warranty.
What is Extended Warranty Insurance Plan
This is an extension to the Original Manufacturer Provided Warranty (OMW) with an additional warranty over and above the original warranty provided by the manufacturer. For example, an air conditioner manufacturer may offer one year warranty on its entire range of split ACs and may offer to extend this deal by adding additional warranty insurance by adding two or three years warranty to the package.
Perhaps you do not consider it appropriate to take such a plan while buying the item, so companies give the option to buy such a plan at a later date also. Some Extended Warranty insurance companies also provide the facility to buy it after six months from the date of the bill.
what is covered
If the Insured Asset gets damaged due to any manufacturing defect, then during the additional warranty period, the amount incurred for its repair or replacement is covered under this policy.
Duration
The term of the policy shall commence at the end of the period of product warranty provided by the manufacturer and shall remain in force for the period of the Extended Warranty chosen. The tenure is decided based on the life cycle of your product.
sum insured
Sum insured equal to the price entered in the invoice for new consumer durables and electronic equipment purchased only from an authorized dealer/retailer.
premium
The premium is determined on the basis of the product type, price recorded in the invoice, rate of damage, warranty provided by the manufacturer and the extended warranty period opted under the policy.
what should be done
Before opting for Extended Warranty Insurance, you should make sure that what is the real benefit from it, lest its cost exceeds the cost of repairing your product, says experts. “If you are buying a very expensive item like an Apple iPhone, 5-star AC, refrigerator or other gadgets, then maybe extended warranty insurance can be beneficial in case they deteriorate,” says Nikhil Chheda, director of Swastik Electronic Retail Chain. Is.
