What is misappropriation cover?
Misappropriation cover is an insurance policy that is used to settle an outstanding lease commitment for a mobile learning device should a parent or student leave with the device and cease paying a monthly donation.
Surely, if a student leaves the school and does not return the device, that is theft?
Technically, yes is the answer. The student does not own the device, either the school or leasing company does. By not returning the device they are actually stealing it. Theft would then be covered by an ADT (Accidental Damage and Theft) insurance policy if there was one in place. To claim for theft, the school would have to obtain a police report reference number to give to the insurance company.
The reality is:
- Would a school wish to file a theft claim against an ex-pupil or the parents of a previous pupil?
- Would it be worth the time and effort compared to the value of the device?
- Will you even find the student or parents?
Based on the above, it makes sense to have misappropriation cover
Even if you have an insurance policy in place, there is a chance you will not use it. Misappropriation cover then would be useful. The key issue is the cost verses the benefit. If the cost of the policy is 10% of the device cost, then more than 1 in ten people would have to leave with the device to make it financially viable.
Where can misappropriation cover be beneficial?
We feel this product is more suitable for colleges, sixth forms and universities where the student is paying for the device, not their parent or guardians. When the student reaches the age of 18 and has completed their minimum education, there is a greater chance of them signing an agreement then changing their mind with regards to the establishment that are going to. Either by accident, or deliberately, they could leave a college/university, cease their donation/contribution and never be found again.
Can we buy misappropriation insurance cover from edde?
Our perception at edde, is that for most schools, the policy cost outweighs the benefits to the school in the first place. Hence, we have taken the view not to sell this product. We do see limited benefits for universities where students are over the age of 18.
If you do have concerns about misappropriation, then please speak to us at edde and we can hopefully find a solution. Call us on: 01494 611 465