Online buyers at Qoo10 can now insure against defective goods

SINGAPORE — Shoppers at the Qoo10 Singapore online marketplace can now purchase insurance protection to cover against defective or malfunctioned electronic goods worth at least S$100, with a new partnership between Qoo10 and local insurer NTUC Income.

The new Purchase Guard insurance policy from NTUC Income offers customers added protection and assurance when purchasing electronic products online from the digital and mobile categories, such as televisions, cameras, washing machines and air-conditioners, said the two companies in a joint statement. Customers have the option to add on Purchase Guard as a product warranty for over 250,000 items on the Qoo10 website.

Ms Annie Chua, NTUC Income’s head of personal lines, noted that the insurance policy not only gives protection to consumers who make purchases online but also provides a “leg up” for online retailers who may not be able to offer an international manufacturers’ warranty. “Purchase Guard thus levels the playing field for online retailers as the insurance cover gives consumers a greater sense of confidence about their purchases,” she said.

A spokesperson from NTUC Income explained that premiums for the Purchase Guard policy are within a range of 5 and 8 per cent of the retail price of the product, and final pricing will depend on whether the insurance coverage period is for three or six months.

To make a claim against Purchase Guard, the insured has to first seek compensation from the seller, and Purchase Guard will pay up to the sum insured (amount paid after any discounts) for the main item or the sum insured minus any compensation that the customer may have received from the seller or manufacturer.

“Customers often find it difficult to recover monetary loses should their purchase turn out defective, as they may not be able to seek compensation from Qoo10 sellers. With Purchase Guard, it instils a sense of trust and confidence in shoppers by enabling them to make better decisions about their purchases and be assured of their purchases,” said Mr Hyun Wook Cho, Qoo10 country manager.

According to a report by Internet giant Google and Singapore state investment firm Temasek Holdings last year, Singapore’s e-commerce market was valued at US$1 billion (S$1.4 billion) in 2015, with online shopping making up 2.1 per cent of retail sales, the highest proportion of all South-east Asian countries surveyed. In 2025, the figure is expected to grow to S$7.5 billion.