| Coverage terms - phasing examplesPhasing can be determined by: -
Period: - Phase 1 takes two
years
- Phase 2 takes two
years
- Phase 3 takes one
year
-
Counter limit of the main counter of the affected
reference serialized item: - Phase 1 up to 1,000
kms
- Phase 2 up to 5,000
kms
- Phase 3 up to 10,000
kms
-
A combination of period and counter limit: - Phase 1 takes two
years or up to 1,000 kms
Example 1 Phase 1: Ceiling cost covering
method with a ceiling of USD 500. As a result, the first USD 500 are fully
covered by the service contract or service contract template. Phase 2: Coverage Percentage cost
covering method with a percentage of 10 percent. Of the costs above USD 500, 10
percent is covered by the service contract or template.
Example 2 Phase | Duration | Coverage | Price | 1 | 2.5
yr | 50% Disc. | 2.5/4)*(0.50*100)=
31.25 | 1 | 1.0 yr | 25% Disc. | (1.0/4)*(0.25*100)= 6.25 | 1 | 0.5 yr | 10% Disc. | (0.5/4)*(0.10*100)=
1.25 | Total | 4.0 yr | | 38.75 |
| |