A conversion from coverage

I have always been skeptical of insurance in all forms.

True, there are insurances that purport to provide a valuable service to society, such as personal and public liability insurance, which covers you and the public while driving, provided you aren’t doing something illegal to begin with.

However, even that type of insurance can become compromised and more about collecting premiums than paying out compensation.

Now, before I go throwing all insurance companies and salesman under the uninsured bus, I would like to tell a short story about my personal run-in with a cell phone insurance company and the shoddy business practices they used to deal with me, which have shaken my faith in insurance.

I am considering converting from coverage all together.

It all started a year ago, when I purchased a new Blackberry. I was offered coverage on the phone for a monthly fee. Pondering my previous handheld experiences (submerging in mug of beer, smashing in pocket while skateboarding and most embarrassingly dropping in an open toilet) I figured coverage, especially the kind that will cover all of my phone accidents, would be a great idea.

The phone salesperson, which I might add, was not an insurance salesperson, despite the fact that they were selling me insurance, told me the insurance would cover a stolen, lost, damaged or destroyed handset, except if it occurred during riots or war – and besides my experience in Vancouver last year, I think I am safe from that (knock on wood).

So I bought the insurance, agreeing to pay a monthly fee to cover my phone, should something happen.

What was not made completely clear was the deductible I would be paying should my phone become lost, stolen, damaged or destroyed.

I was skeptical enough of insurance to begin with but when I found out about the deductible I would be paying, I suddenly felt a little rooked.

But I agreed to pay for the insurance and made monthly payments for the past year.

So far, so good. No claims. Then bam! My phone jumps from my accidentally opened jacket pocket while riding at Marmot Basin in Jasper and is lost forever.

But have no fear, insurance is here!

The next day, I ring up the insurance company – a company that will remain nameless, as I would rather warn readers against all cell phone insurance than provide one company with undeserving publicity.

At first, everything went smoothly. A very friendly fellow on the phone got everything sorted out and had a phone coming to me in less than two days – by my count that meant one day.

This is where my faith begins to waver.

Three days later, while waiting at home in the middle of the day for a package that was coming two days earlier, I finally get what I was waiting for – or so I thought.

The phone I lost was a black Blackberry. The phone I got was pink. Oh, my fading faith.

Upon closer inspection, the “new” pink phone is not even new at all.

The “refurbished” pink phone was already displaying its defects straight from the box. Not only was there dust under the screen, but the screen itself was peeling off.

I immediately called the insurance company.

Again, a polite service person quickly came to my rescue, having a second phone shipped within a day.

Two days later, a black phone arrives! All is well.

Well, maybe not.

Out of the box, I can see the screen peeling away from the second refurbished phone.

At this point I am starting to get a little frustrated. I call back again.

“Hello,” I say. “Listen, your company has sent me two phones, one was pink and they were both broken when they arrived and it has been a week and I thought I was paying for a service that would provide me with a ‘new’ phone in a day should my old phone become lost, stolen, damaged or destroyed.”

“Oh, we’re not supposed to guarantee service within a day,” responds the service person.

“Day, two days, four days. It doesn’t really matter to me. My problem is I am paying a $7 monthly fee, plus a $150 deductible and all I have received is two untimely broken phones.”

“Is there no compensation or way to help me out in the situation?” I asked politely.

“No. Sorry, sir. The structure of our policy is nonnegotiable,” he said solemnly.

“Well, can I speak to a manager?”

“Sure, here’s the customer care representative.”

“What seems to be the problem sir?” said a woman’s voice.

Reluctantly, I retold the entire story.

“I am sorry for your situation, sir. But once the phones are shipped from here, it is out of our hands.”

I get a little testy. “So I am taking on all the risk, despite the fact that I am paying for you – the insurance company – to take on the risk for me? What you’re telling me is that I should get another insurance company to cover the shoddy service of my current insurance company.

Is that what you’re telling me?”

“Sir, we stand behind our service 100 per cent.”

“Well,” I respond. “I feel like I am getting the raw end of a bad deal and I have to go to work now and part of my job is to write a column and I can imagine this week’s column will have something to do with the service I am receiving.”

“Can you hold sir? Let me put you through to the office of the CEO.”

The office of the CEO did nothing more than offer me an upgrade of my handset, which seemed a little odd.

So they can’t provide financial compensation, however, they can provide handset upgrades. What, do they have a stash of refurbished Blackberry Storms and iPhone 3s hidden away to offer upset customers, yet they are unwilling to open the fat wallet and dole out a few bucks for a service not rendered?

I am expecting my broken refurbished pink upgraded Blackberry in the mail within one to 10 days.

Until then I will just keep corroborating my story with similar accounts of shoddy phone insurance service on the internet.

Hey, they might not all be true, but I’d believe anonymous internet user over insurance representative any day.