What If Your iPhone Insurer Goes Bust?

By on October 26, 2013

Just as it is important for you to buy any other form of insurance, it is similarly important to buy insurance if you own an iPhone5. This is going to help you get coverage in case the phone gets lost, if the phone gets damaged, or if the phone stops working. Therefore, you will have to choose the right insurance for your iPhone 5, if you want to avoid a complex situation, without a phone in hand. Furthermore, all the contacts and important data can get lost, if the phone simply stops working and if you do not have immediate cash to get it repaired. In such situations, insurance can prove to be of immense help. For example Protectyourbubble.com insurance is a leading insurance service provider in UK.

What If Your iPhone Insurer Goes Bust?

But, what if the insurer goes bust all of a sudden? That is certainly a fact of concern.

Situation when the Insurer goes Bankrupt

As per rules in UK, you can get recompensed in case the insurance company goes bust. So, if your insurer goes bust, you still can claim. All of the insurers working in the UK are under the regulation of the Government and also the Government backed Financial Services Compensation Scheme or the FSCS. Therefore, these insurance providers are treated just as the banks. Therefore, if these banks ever go into any default, you will be able to get the required protection. You can get the protection in two different ways:

  1. In case you are required to make a claim while the insurer has gone bust – The actual objective of the FSCS is to ‘maintain continuity’. That is if the insurer ever goes bust, it is going to look for another similar kind of insurance provider who can continue with the policy, or if possible issue another policy. In addition, in case you have different forms of claims in the process while the insurer files bankruptcy, or in case you need to make any claim before the new insurer can be found, FSCS is going to look after this so that you can get the coverage.
  1. If you made upfront payments and if the insurance company goes bust – In case you have been making payments for more than a year, but if the company files bankruptcy in a month or two, you may lose out more than expected. You are supposed to get protection against this, but if FSCS fails to provide the required protection like transferring the policy to a new provider, they are going to provide you more time so that you can get an alternative insurance. In addition you can also get 90% of the money against your payments, from the FSCS. Consider this – you have been making payments for a year, till January and the insurer goes bankrupt in September. So, in such a situation if the FSCS fails to transfer the policy as per your needs, you can get back money amounting to that of payment made in four months.

This is how the insurance policies work in UK. Therefore, if you are planning to buy insurance policy for your iPhone 5, you can consider all of these details. These details can help you take the right steps if the insurer goes bust, in the future. It is your money, and you will have to make sure that you are getting the right coverage and policy. Furthermore, you will also have to be aware of the cost and thus it would be better to check out the comparison charts of different policies, as provided in the online insurance based websites. For more details you can visit the website at uk.Protectyourbubble.com.

About Sophie S.

About the Author: Sophie Samuel is blogger ,who loves sharing her knowledge. Follow her on Google+.