Daily NK has obtained documentation revealing that North Korea’s mandatory mobile phone insurance program offers little actual protection for consumers. While the insurance certificates promise repair and replacement services, customers are still required to pay for repairs out of pocket.
The insurance certificate, issued by the Korea National Insurance Corporation (KNIC), includes standard policy information such as the covered device, warranty period, and serial number. Coverage is listed as one year from the date of purchase, during which time policyholders can theoretically have their phones repaired or exchanged at authorized provincial insurance bureaus.
To file a claim, customers must present their citizen ID and insurance certificate to their local authorized dealer. The KNIC’s contact information, including their Pyongyang address in the Haebangsan neighborhood of Chung district, appears at the bottom of each certificate.
However, the policy’s extensive list of exemptions effectively nullifies most coverage. These include damage from improper use or maintenance, unauthorized repairs or parts replacement, pre-existing defects, external damage (classified as “blemishes”), incomplete or incorrect documentation, and any false information in submitted documents.
A recent case illustrates the system’s shortcomings. When a Pyongyang resident’s new phone screen broke, he contacted his local insurance dealer for repairs. Instead of assessing his claim, the dealer immediately directed him to a technology exchange center where he would have to pay for repairs himself.
When the customer questioned this response, citing the certificate’s promise of free repairs within the warranty period, the dealer cited the “external blemish” exemption—claiming that a broken screen didn’t qualify as a malfunction. After the customer persisted with his complaint, the dealer reported him to police. The customer was forced to write a self-criticism letter and received no compensation.
According to Daily NK’s source, this case reflects common experience. While mobile phone insurance is mandatory for all phone purchases in North Korea, most citizens view it as worthless. “The insurance system was created purely for appearance,” the source explained. “In reality, it’s just another way to extract money from citizens.”
Daily NK works with a network of sources in North Korea, China, and elsewhere. For security reasons, their identities remain anonymous.
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December 16, 2024 at 05:30AM
by DailyNK(North Korean Media)