A company better known for the repair and servicing of mobile phone handsets has just launched an insurance policy for mobile phones for sale through independent dealerships.

Intec Cellular Services is offering two sell-on fixed-price insurance policies, one of which covers what the company terms "airtime abuse", in which the user is unaware a thief is clocking up calls. The first policy is a pre-pay handset policy costing £12.99 and covers theft, damage and loss. The second is a post-pay policy costing £29.99; it covers the same liabilities plus airtime abuse up to £200.

Both policies, which have been made available in time for the traditional Christmas buying sprees on mobile phones, have a generous margin so they can be offered to customers as a "free insurance with handset promotion" to give them an edge over the major electrical chains and supermarkets.

"Our move into the insurance sector marks our determination to help independent dealers increase their competitive edge," said Intec's Charlo Carabott.

"Inability to cover accidental loss or damage represents one of the most common forms of customer dissatisfaction. We believe that most handset policies are still prohibitively high for many subscribers and that our insurance offers customers the lowest and most attractive premiums available."