- A claim for a stolen tablet was first rejected because there was no blacklisted SIM card.
- A woman lost cover when she replaced her insured Samsung phone with a Huawei device but didn’t update her policy.
- A claim for a phone stolen from a car failed because there was no proof of forced entry.
A father whose toddler’s tablet was stolen through an open car window, a woman whose new smartphone was not listed on her policy, and a motorist whose phone disappeared from a locked vehicle are just some of the complaints that led the National Financial Ombud (NFO) to warn people about common cellphone insurance mistakes.
According to the NFO’s Non-life Insurance Division, many claims are rejected not because the theft or loss didn’t happen, but because policyholders didn’t follow SIM card rules, update their device details, or meet conditions about leaving devices unattended.
Wi-Fi-only tablet dispute ended in settlement
Lead Ombud Edite Teixeira-McKinon explained that one of the most common disputes involves policies that require the cellphone to be used with a specific SIM card. In one complaint, a father claimed for a tablet that was snatched from his toddler through an open car window. The insurer rejected the claim because the SIM card had not been blacklisted.
The father said he had never been told that the SIM card had to be registered and blacklisted, and explained that the tablet was used only on Wi-Fi and did not contain a SIM card. Teixeira-McKinon said the insurer eventually agreed that the SIM card couldn’t be blacklisted because of how the tablet was used and settled the claim as the NFO recommended.
New phone was never added to the policy
Another complaint involved a woman whose HUAWEI smartphone was stolen. Her insurer rejected the claim because her policy still covered her old Samsung device. The NFO found she had replaced the phone after starting the policy but never told the insurer to update the cover for the new device.
Teixeira-McKinon said the complainant was told she hadn’t shown that the stolen device was covered by the policy wording.
Locked vehicle did not guarantee cover
A third complaint was about a man who left his phone in the cubby hole of his car while running errands. When he got back, the phone was gone.
Even though he said the car was locked, the policy required proof of violent or forced entry. With no sign of forced entry, the insurer’s rejection of the claim stood.
Ombud warns consumers to review their cover
The NFO said these cases show just how easily people can lose cover, even when a phone really has been stolen. Teixeira-McKinon said insurers can only rely on SIM card conditions if they can show that customers were told about them before the policy started and that the device wasn’t being used with the required SIM card.
Cellphones can be insured through their own policies or under household contents cover. For household cover, the device usually needs to be listed under portable possessions, and you might pay an extra premium. The ombud also warned that smartphones lose value fast, so people should check their insured values regularly to avoid paying premiums that don’t match the current replacement cost.
The NFO urged people to register their SIM cards, read policy wording carefully, update policies as soon as they replace phones, make sure devices are specified correctly under household cover, and not leave phones unattended in cars or public places.
Teixeira-McKinon said protecting your cellphone isn’t just about the device itself, but about safeguarding the digital lifeline it represents.
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