The lifline complete insurance from cpw allows you to cancel your airtime contract after like 3months (on a 12month contract) or 6 months on a 18 month contract. how does this work? surely the network cant make any money off this, whats the catch?
The network still make their money (or most of it) using this system, as the insurance pays the early cancellation charge (equivilent to the remaining months line rental).
I once rang up CPW (my local shop) asked about cancelling it and the bloke asked if it was insured. To which i said yes. He then went onto saying if you fetch everything in we can use your insurance to cancel the contract and stuff.
I didnt go ahead as i just upgraded my handset.
But that was about 9 months of my 12 month contract like.
Well, I guess they will simply refuse to insure you at some point, probably after something like 2-3 claims under this clause.
Plus, you have to give your old phone back when you cancel the contract under this clause, and you can't port your number to a different contract so you will end up with a new number each time.
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