HDFC Ergo pays Apple Watch rewards after step-count controversy
What's the story
HDFC Ergo has faced criticism for going back on its word to refund customers who bought Apple Watches through its 'India Gets Moving' initiative.
The insurer has since started processing payments on the basis of step-count data.
However, it initially denied claims from several participants who claimed to have legitimately achieved their step-count goals, resulting in widespread criticism and confusion among customers.
Program
Initiative to promote healthy habits
In November 2024, HDFC Ergo collaborated with Zopper and Apple to launch the 'India Gets Moving' initiative.
The program sought to promote healthy habits among customers buying an Apple Watch.
To participate, customers had to purchase an Apple Watch from an authorized reseller in India and sync their health data with HDFC Ergo's mobile app.
Wellness points were given based on daily step counts, redeemable for cash every month.
Reward scheme
A look at the step-count based reward system
The initiative's reward system was based on daily step counts.
A step count of over 15,000/day would get the customer four points, while counts between 12,001-15,000 and 10,001-12,000 steps would get three and two points respectively.
A count of 8,001-10,000 steps would get one point.
Based on their points over a year, customers could have recovered the full cost of their Apple Watch or part of it.
Policy issues
Unexpected policy terminations
Participants in the initiative were also covered under the Sarv Suraksha Plus group policy, which provided a personal accident cover of ₹1 lakh among other benefits.
However, many customers were shocked when their cashback claims were denied a month later.
They received emails from HDFC Ergo saying their policies were being terminated for "unethical" step registration.
The insurer also extended the period for crediting claimed amounts to 30 days from the initially mentioned five to seven days.
Company statement
HDFC Ergo's response to claim rejections
Responding to the backlash, HDFC Ergo claimed it had only rejected claims from those who allegedly manipulated their step-count data.
The company assured Mint that all valid claims were being processed.
"We at HDFC ERGO have been thoroughly assessing the step counts of our policyholders and have been paying all the genuine claims to the customers under this insurance program," said a company spokesperson.