Cashback "insurance"

from http://www.mobiletoday.co.uk/content...sp?men=2&sub=2

"An independent dealer has struck what is believed to be a unique deal to
insure its customers against unpaid cashback.

Click Mobile, which has stores in Hounslow, Ilford and Southall, started
offering customers cashback protection last Friday (6 April). The customers
pay £29.16 to have their cashback protected for a total of 12 months. The
scheme is being offered to customers on 3.

The Click cashback plans are covered by a 'bespoke' financial guarantee
policy underwritten by Lloyd's of London for a 12-month period, based on
Click's anticipated turnover for the next year of £15m. Click has said it
expects to sign up 18,000 new airtime contracts within this period.

If Click should cease trading, its insurance company will pay all
outstanding cashback owed to customers.
© Copyright 2007 : Noble House Media Ltd

--------8<----------------

I wonder if the policy will pay out if the company decides the terms and
conditions haven't been followed to the letter.
Surely this is a far more likely scenario than the company going bust?

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› See More: Cashback "insurance"

On Wed, 11 Apr 2007 16:18:33 GMT, "DMac" <[email protected]> wrote:

>from http://www.mobiletoday.co.uk/content...sp?men=2&sub=2
>
>"An independent dealer has struck what is believed to be a unique deal to
>insure its customers against unpaid cashback.
>
>Click Mobile, which has stores in Hounslow, Ilford and Southall, started
>offering customers cashback protection last Friday (6 April). The customers
>pay £29.16 to have their cashback protected for a total of 12 months. The
>scheme is being offered to customers on 3.
>
>The Click cashback plans are covered by a 'bespoke' financial guarantee
>policy underwritten by Lloyd's of London for a 12-month period, based on
>Click's anticipated turnover for the next year of £15m. Click has said it
>expects to sign up 18,000 new airtime contracts within this period.
>
>If Click should cease trading, its insurance company will pay all
>outstanding cashback owed to customers.
>© Copyright 2007 : Noble House Media Ltd
>
>--------8<----------------
>
>I wonder if the policy will pay out if the company decides the terms and
>conditions haven't been followed to the letter.
>Surely this is a far more likely scenario than the company going bust?
>

CB's one of those schemes whereby companies should be required to pay
in to some sort of Bond to ensure that should they go bust the Bond
will pay out the CB's that are due .

"DMac" <[email protected]> wrote in message
news:[email protected]...
> from http://www.mobiletoday.co.uk/content...sp?men=2&sub=2
>
> "An independent dealer has struck what is believed to be a unique deal to
> insure its customers against unpaid cashback.

<snipped>

Genius. Pure bloody genius.

Gareth.

[email protected] declared for all the world to hear...
>
> "DMac" <[email protected]> wrote in message
> news:[email protected]...
> > from http://www.mobiletoday.co.uk/content...sp?men=2&sub=2
> >
> > "An independent dealer has struck what is believed to be a unique deal to
> > insure its customers against unpaid cashback.
>
> <snipped>
>
> Genius. Pure bloody genius.

"We promise not to go bust. But just in case we do...."
--
Regards
Jon

"Jon" <[email protected]> wrote in message
news:[email protected]...
> [email protected]
>>
>> "DMac" <[email protected]> wrote in message
>> news:[email protected]...
>> > from http://www.mobiletoday.co.uk/content...sp?men=2&sub=2
>> >
>> > "An independent dealer has struck what is believed to be a unique deal
>> > to
>> > insure its customers against unpaid cashback.
>>
>> <snipped>
>>
>> Genius. Pure bloody genius.
>
> "We promise not to go bust. But just in case we do...."

Trouble is it doesn't cover the *most likely* cause of cashback failure.
If you look on uktm - with a few exceptions where the company does go
under - the majority
are bills not sent in time / wrong bill sent / lost in post / company
changes t+c / dog ate the 3rd bill etc

Like most insurance it is not worth the paper it is written on