"We want to distance ourselves from the insurance industry," says MD, Nico Mouton, adding that the one-month-old company has widespread support from financial services and IT industry companies, and has signed up over 1 200 clients in the first week.
Is it insurance?
SA Insurance Association executive, Caroline da Silva, says if an entity covers equipment loss on somebody else`s behalf, "this is definitely insurance, requiring registration in terms of the Insurance Act. Furthermore, policies have to be underwritten if insurance is offered, otherwise it`s illegal."
Mouton begs to differ. "Rather call it a warranty," he says. "So long as you pay your premiums, you`re covered for the computer/laptop/server system, its parts and associated peripherals, such as scanner, printer and accessories like joysticks, against lightning, water damage, heat damage or day-to-day failure."
Da Silva explains that recovery of lost data is a service, but actual assumption of loss on somebody`s behalf is insurance proper. Mouton counters that customers covered "by our policy, for want of a better word", are actually members who pay a premium for a warranty. "There is no actual policy," he says.
The cover period ranges between one and two years. Desktop cover costs R60 per month, notebook cover costs R70 a month and cover for server failure is R90 per month.
Not theft
NMX does not cover theft. Da Silva says although actual figures are hard to come by, because PCs are not normally listed separately from household content, "theft is becoming a big problem".
This is especially true in corporate environments, and less so at home, she says, but the insurance industry`s reaction is the same. Premiums rise commensurate with risk, and additional physical and information protection is often required before insurance is given. "Also, a lot of resources are going into recovery and tracking of stolen PCs," she adds.
NMX, currently 10-strong in terms of sales, technical and management, has done four years` worth of research into this service, Mouton says, adding that he is confident it will succeed. "We have the support of some large IT services companies in SA as well as the support of financial services companies that are advising us on the administration of client funds."
Under non-disclosure, Mouton will not say which companies these are, but he says their country-wide reach and the use of couriers have helped him already service customers anywhere in SA.
NMX has advertised through Webmail, which guarantees exposure to 100 000 subscribers per month, for a hefty once-off sum of cash. Its call centre takes applications and its Web site takes registration.
Mouton worked as programmer at the JD Group and in a freelance capacity.
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