"Intentional Device Damage Is Insurance Fraud"… Apple Adds Clause to AppleCare+ Terms

"May Report Insurance Fraud to Police and Judicial Authorities"

[Asia Economy Reporter Oh Su-yeon] Apple has added a clause to its terms stating that if an AppleCare+ subscriber intentionally damages their device to receive service benefits, it may be considered insurance fraud.

On the 18th, Apple added a section on "Deception, Fraud, and Misuse in Insurance Claims" to the AppleCare+ terms and conditions.

On the 7th, when Apple's new iPhone 14 series was officially released in Korea, citizens lined up at the Apple Store in Myeongdong, Jung-gu, Seoul to purchase the product. Photo by Moon Honam munonam@

AppleCare+ is a paid program that provides three services: battery repair and replacement for batteries with less than 80% maximum capacity, service claims for accidental damage, and technical support.

Service claims for accidental damage function like a type of insurance. For example, it covers damage to a device accidentally dropped by the consumer.

The newly added clause on "Deception, Fraud, and Misuse in Insurance Claims" states that if a service claim for accidental damage is found to be fraudulent or if false information is intentionally provided during the claim, the claim will be denied. In such cases, Apple or the responsible insurer, AIG, may report the insurance fraud to the police or judicial authorities.

Additionally, it is known that recently AIG sent an official letter to an internet community administrator stating that if a product is intentionally damaged and an insurance claim is made, the person may be subject to up to 10 years imprisonment or a fine of up to 50 million KRW under Article 8 of the Insurance Fraud Prevention Act.