Insurance gives peace of mind to smartphone customers

By Kang Seung-woo

Staff reporter

Jin Eui-chul recently met with a headache over his recently-purchased iPhone. Not that its smooth touch screen or a myriad of apps bother him but that he suffers from a constant fear of losing his pricey status symbol.

The 30-year-old man is trying to find an insurance policy from a growing number of options for his 600,000-won gadget.

Jin is not alone. An increasing number of expensive smartphone users are considering buying policies.

In the case of loss, robbery or damage, the insurance provides a new cell phone or a certain amount of money to a subscriber.

"Recently, I have seen many people lose their smartphones, so I have decided to buy insurance. People around me are also considering this due to the costly price of the gadget," said Jin.

"But there are several plans, so I am trying to decide which one suits me."

Interestingly enough, these insurance products are carrier-initiated.

SK Telecom, KT and LG Telecom all offer policies.

SK, the No. 1 carrier, started "Phone Safe 2.0" on June 3 after improving its existing service.

The product used to pay out up to 500,000 won for a 2,500 won premium, but it widened its insurance options to three with coverage of up to 900,000 won.

LG released "Phone Care Plus" on June 1 and lowered its monthly premium to 2,000 won to 3,000 won paying claims from 500,000 won to 700,000 won.

KT, which hit the jackpot after introducing the iPhone to Korea, provides "Show Phone Care," which indemnifies a user for between 400,000 won and 700,000 won.

Although its service is not that different from others, it has the most members thanks to the iPhone boom.

SK covers for loss and theft of the handset, while KT and LG will also cover damage to the phone.

"Thirty percent of smartphone users are estimated to subscribe to an insurance service and the recent roaring success of smartphones has increased the number of policy holders," a KT official said.

Meanwhile, each firm has braced itself for those making false claims.

After reporting a loss, a user has to meet certain requirements, including confirmation of the loss or theft with a report from the police.