Caution - Retailer's Extended Warranty As many of you know, retailers like eZone, Hypercity and Next are selling their own Extended Warranties at a very less price compared to the Manufacturer's warranty. There are some important catches in this. I am sharing my experience with this.
I bought an Acer laptop from Hypercity just before Diwali. The cost of second and third year extended warranty was Rs.2,100. When I bought this, I wasn't aware that Acer's extended warranty for 2nd and 3rd year costs around Rs.6,000. The warranty certificate was in the form of a receipt mentioning the laptop's serial number and the warranty validity period. Hypercity sales staff told that it is accepted all over India by all Authorized Acer Service Centers. I went ahead and bought it.
One of my other Acer laptop had some issues and I took it to the Acer authorized service center. There I enquired about the warranty issued by Hypercity. I was shocked when they told that Acer does not honor any extended warranty issued by retailers. Same day, I had to visit Nokia care for repairing my cell phone and they too confirmed that they do not accept any extended warranty issued by retailers.
Same evening, I went to Hypercity and talked to the salesman first. As expected, he didn't have any clue when I said that Acer and Nokia authorized service centers refused to accept the extended warranty.
Next came the supervisor wearing a t-shirt saying 'Ask me for Extended warranty'. He defended that this whole extended warranty thing is new, Acer and Nokia are not aware of Hypercity's warranty. In 6 months time this information would flow to them and there will not be any issues. I wasn't convinced with the nice story he told. The supervisor went and brought the Store Manager.
The Store Manager revealed that, the Hypercity's warranty is 'covered' by Tata AIG and I need to call Hypercity's helpline when I face any issue and lodge a 'claim'. Then, 'someone' (not the authorized service center) will contact me and service the laptop. I don't know when and how long it would take for Tata AIG to find someone to service my laptop. Then, Tata AIG would 'reimburse' the cost of service to me. From all the keywords he used, it became evident that they are selling an 'Insurance' product and giving wrong impression to the customers that it is an extended warranty. This is how they are able to sell this at about one third of the price (Rs.2,100 vs Rs.6,000). The Store Manager defended that it is a warranty product. I responded telling that, their product is very similar to Car Insurance which is a lot different than a Car's extended warranty, he didn't have an answer.
I just told him that I would not have bought this product had the salesman was transparent about how the warranty works. I asked him to cancel it and refund the money. Luckily, I was within the 14 day grace period where in I can cancel the warranty and get full refund. So, they gave me some credit note for Rs.2100 which I can use in Hypercity. Looks like, they wouldn't refund in cash.
Even with manufacturer's warranty, we face issues with part availability. Am not sure how Hypercity can work with Tata AIG (both know nothing about servicing a laptop) and resolve the issue within a reasonable period of time.
Folks, just beware before buying any Retailer's extended warranty. |