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Silver Expert
speakgsm
Posts: 3,672
Registered: ‎06-05-2008

Mobile Phone Insurance Gripe

As somebody who used their mobile phone insurance recently for the first time ever, I was very glad to have it! I lost my Blackberry Curve and thankfully I had taken out O2's insurance last year when I got the phone, so was lucky to get a replacement.

On the other hand, I see a new *scam* emerging recently which is in my opinion, aided by the retailers/insurance companies.

A customer buys a nice new phone and also buys an insurance option for a few euros a month. They then get fed up of the phone after maybe 6 months, sell it online or in Buy & Sell etc. Now they report to their network that their phone was lost/stolen. The network blacklists the IMEI number of the handset and renders it useless to the new owner!

The original customer gets a new phone and off they go again, while the poor sucker who bought the first one now owns a dead phone which is only suitable for spares.

What struck me when completing my claim, was the fact that the insurance company say they will not honour 3 claims a year!! THREE claims in one year!!!! So, for a few euros a month, you can claim up to twice a year??? No wonder people are getting scammed all over with the ease of insurance claims/replacements.

How can it be changed??

Simple! Drop the number of claims to 1 a year and the main factor..... the customer MUST pay the insurance cost of 1 year up front!!! That would certainly make people stop and think before taking out phone insurance. It is made TOO easy and attractive at a few euros per month at point of sale. If you had to hand over 50-100 euros at time of purchase, how many people would actually take the insurance option??

I appreciate that add-ons, such as insurance, warranty etc are where most retailers make their money, but this one just sucks.
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O2_Daryll
Posts: 34,994
Topics: 584
Kudos: 8,781
Solutions: 1,032
Registered: ‎23-04-2008

Re: Mobile Phone Insurance Gripe

Phonecover is the name of the company that handles the insurance owned by eaglestar or zurich (whatever they are calling themselves) I believe this makes a good basis for a complaint letter.

Good point though in all fairness and A+ for grammer.
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Silver Expert
speakgsm
Posts: 3,672
Registered: ‎06-05-2008

Re: Mobile Phone Insurance Gripe

Ah this is not aimed specifically at Phonecover (Eaglestar/Zurich) Daryll
This is across the board. I'm not blaming any one particular retailer/insurance company.

A+ for grammar?..... "You avin a laugh"?
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Bronze Advisor
joejoe
Posts: 2,480
Registered: ‎01-05-2008

Re: Mobile Phone Insurance Gripe

What about the person who wants to make 2 claims a year then? Some people lose their phone a few times, or damage it on a regular basis due to their work or whatever .. they take out insurance for these events!

I agree that something needs to be done about the IMEI blocking - perhaps some sort of system where once a handset is sold they notify the network or something .. but limiting peoples insurance cover is nonsense.
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Silver Expert
speakgsm
Posts: 3,672
Registered: ‎06-05-2008

Re: Mobile Phone Insurance Gripe

Well to be fair, my biggest problem is the cost and how its made so attractive at a few euros a month. If the premium had to be paid annually, it would certainly make people consider first.

Also, maybe if they introduced a system like a no claims bonus, it would help cut the number of claims.

I certainly wouldnt like to be trying my car insurance company twice a year for a replacement car!!!! :smileyvery-happy:
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Bronze Advisor
joejoe
Posts: 2,480
Registered: ‎01-05-2008

Re: Mobile Phone Insurance Gripe

If I rammed it into a wall twice I would expect them to pay out though!

You might have a car worth 30k but only be paying 50 a month in insurance.
You have a phone worth 300 and you pay a fiver a month.

It balances out at the end of the day.

I do agree with you about people abusing the system and as a result people buying secondhand phones suffer, but I don't see your suggestions as an alternative.
ding dong ding
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Platinum Expert
Gooch2k4
Posts: 8,397
Registered: ‎13-05-2008

Re: Mobile Phone Insurance Gripe

Phone Insurance is a bit of a money racket, people should just be more careful with phones!
No! I don't work for O2!

Or Carphone Warehouse...now... lol
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Bronze Advisor
decsramble
Posts: 383
Registered: ‎11-06-2008

Re: Mobile Phone Insurance Gripe

I am the other extreme from the cases you mention I have insurance and in all the years that I have owned a phone I only had to claim once for a stolen phone.

No one would ever suggest the insurance company should contact me and offer me a free phone without me putting in a claim just cause it's fair after all these years of me paying premiums.

If people put in multiple claims then it is the responsibility of the insurance company to ensure they are legitimate claims. If people buy second hand phones from random strangers online then in my opinion its a clear case of buyer beware.
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Silver Contributor
Celtwytch
Posts: 56
Registered: ‎23-07-2008

Re: Mobile Phone Insurance Gripe

I too have had insurance for many years, and have only made one claim (on a separate issue, I was not impressed that the phone I paid over �200 for 2 years ago was replaced with one that I could have upgraded to for just �49). I don't agree that claims should be limited to one per year - not everyone has been as lucky as me who has only lost one phone in all the years of having a mobile. I do agree, however, that those who unwittingly buy phones that have been blacklisted are innocent victims of an insurance scam. True, the buyer should be wary of buying a second-hand phone, but these are the chances one takes. I think that there should be some facility to check the status of an IMEI. Perhaps a website and/or phone number operated by CommReg or some such body where people can check to see if a particular phone has been reported lost or stolen. The buyer can ask for the IMEI of the phone before purchasing it, and check it out. Better yet, sellers who list mobiles in online auctions could be required to include the IMEI in their listing. That should do away with a lot of fraud :smileytongue:
A pedantic ickle wytch
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Platinum Expert
Gooch2k4
Posts: 8,397
Registered: ‎13-05-2008

Re: Mobile Phone Insurance Gripe

hard to read?
No! I don't work for O2!

Or Carphone Warehouse...now... lol
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Silver Contributor
Celtwytch
Posts: 56
Registered: ‎23-07-2008

Re: Mobile Phone Insurance Gripe

hard to read?

When I initially submitted my post, the font size was tiny and difficult to read. So I edited it to increase the font size. Cos I'm a caring sort of wytch :smileyhappy:
A pedantic ickle wytch
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Platinum Expert
Gooch2k4
Posts: 8,397
Registered: ‎13-05-2008

Re: Mobile Phone Insurance Gripe

ok thats cool :smileyhappy:
No! I don't work for O2!

Or Carphone Warehouse...now... lol
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Bronze Advisor
joejoe
Posts: 2,480
Registered: ‎01-05-2008

Re: Mobile Phone Insurance Gripe

Dam custom fonts .. they should be banned!
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Silver Contributor
Celtwytch
Posts: 56
Registered: ‎23-07-2008

Re: Mobile Phone Insurance Gripe

LOL :smileywink:
A pedantic ickle wytch
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Platinum Expert
Gooch2k4
Posts: 8,397
Registered: ‎13-05-2008

Re: Mobile Phone Insurance Gripe

dont make joejoe angry.......you wouldnt like him when hes angry.....
No! I don't work for O2!

Or Carphone Warehouse...now... lol
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Bronze Advisor
Fergal
Posts: 1,115
Registered: ‎21-05-2008

Re: Mobile Phone Insurance Gripe

a database of all blocked imei's operated by insurance companies and if you buy a phone on ebay etc and it is suddenly bricked you can contact the relevant insurer with details of your purchase and they could reactivate or compensate you if your info led to convictions?

would this not be the way to go?
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Silver Expert
speakgsm
Posts: 3,672
Registered: ‎06-05-2008

Re: Mobile Phone Insurance Gripe

Yes. We need some kind of access to the database that the phone companies use. Maybe an online website where you can enter the IMEI number and check if its dodgy first. The only problem is these scammers know the system well. They sellt he phone, wait a few weeks and *then* report it lost or stolen!!!
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Platinum Expert
Gooch2k4
Posts: 8,397
Registered: ‎13-05-2008

Re: Mobile Phone Insurance Gripe

we wont be able to get access to that database, it would be against the data protection act im fairly sure
No! I don't work for O2!

Or Carphone Warehouse...now... lol
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Bronze Advisor
Fergal
Posts: 1,115
Registered: ‎21-05-2008

Re: Mobile Phone Insurance Gripe

then a facility to register your 2nd hand phone when you buy it so when the previous owner looks for money from the insurers they will have serious questioning about how the phone was sold weeks prior to it being reported stolen.
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Silver Expert
speakgsm
Posts: 3,672
Registered: ‎06-05-2008

Re: Mobile Phone Insurance Gripe

Hmm. Now there's an idea!
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Platinum Expert
Gooch2k4
Posts: 8,397
Registered: ‎13-05-2008

Re: Mobile Phone Insurance Gripe

its an idea alright, but who would run it?
No! I don't work for O2!

Or Carphone Warehouse...now... lol
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Silver Expert
speakgsm
Posts: 3,672
Registered: ‎06-05-2008

Re: Mobile Phone Insurance Gripe

I vote joejoe :smileyvery-happy:
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Bronze Advisor
Fergal
Posts: 1,115
Registered: ‎21-05-2008

Re: Mobile Phone Insurance Gripe

it is something the insurance companies could do but they wont as then they would have no reason to keep premiums so high and less people would be insuring their handsets
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Platinum Expert
Gooch2k4
Posts: 8,397
Registered: ‎13-05-2008

Re: Mobile Phone Insurance Gripe

it is something the insurance companies could do but they wont as then they would have no reason to keep premiums so high and less people would be insuring their handsets
hmm yeah thats true
No! I don't work for O2!

Or Carphone Warehouse...now... lol
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Bronze Advisor
joejoe
Posts: 2,480
Registered: ‎01-05-2008

Re: Mobile Phone Insurance Gripe

I too have had insurance for many years, and have only made one claim (on a separate issue, I was not impressed that the phone I paid over �200 for 2 years ago was replaced with one that I could have upgraded to for just �49). I don't agree that claims should be limited to one per year - not everyone has been as lucky as me who has only lost one phone in all the years of having a mobile. I do agree, however, that those who unwittingly buy phones that have been blacklisted are innocent victims of an insurance scam. True, the buyer should be wary of buying a second-hand phone, but these are the chances one takes. I think that there should be some facility to check the status of an IMEI. Perhaps a website and/or phone number operated by CommReg or some such body where people can check to see if a particular phone has been reported lost or stolen. The buyer can ask for the IMEI of the phone before purchasing it, and check it out. Better yet, sellers who list mobiles in online auctions could be required to include the IMEI in their listing. That should do away with a lot of fraud :smileytongue:
People won't give out IMEIs before purchasing because people can fake IMEIs on handsets .. which means they can use your one to do it etc.
ding dong ding
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