Should one insure the new washing machine while it is under full warranty?
Renuka Ganguly, Kolkata
A warranty will normally cover an asset against the losses arising due to manufacturing defects whereas an insurance cover provides protection against any accidental losses. For example a warranty will not cover a loss due to theft of the asset nor will it cover if the asset is burnt in an accidental fire. In fact, the coverage under a contract of insurance and a warranty is totally mutually exclusive. Therefore, it is advisable to insure the assets against the risks to which they may be exposed even if they are covered under full warranty. In fact if the asset is under an annual maintenance contract warranty, one gets a considerable discount in the premium for a breakdown insurance policy.
