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
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 |