Coverage terms - phasing examples

Phasing 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
PhaseDurationCoveragePrice
12.5 yr50% Disc.2.5/4)*(0.50*100)= 31.25
11.0 yr25% Disc.(1.0/4)*(0.25*100)= 6.25
10.5 yr10% Disc.(0.5/4)*(0.10*100)= 1.25
Total4.0 yr38.75

 

Related topics