Npower to offer cashback on boiler insurance

Npower is to reward customers with a cashback deal on boiler care insurance policies if they don’t make a claim, in a move the company says will “shake up” the energy industry.

The Hometeam 50 Boiler Care Flexi insurance policy will repay 50% of the value of the plan at the end of the 12-month cover period to customers who don’t claim against the policy.

Npower is pitching itself directly against rival British Gas’s Homecare 100 policy, which is the same price but does not include a boiler service or cashback offer.

The Npower £126-a-year Homecare 50 care policy also includes an annual boiler service worth £74.

The energy supplier is launching a national press and online campaign today (7 April) to support the launch of its “No Call Out Cash Back” service.

The ads, created in-house, compare the prices of Npower and British Gas, but do not directly compare the rival insurance products.
Giuseppe Di Vita, managing director of Npower retail, says that the company recognises it is “galling to pay out to protect a home appliance like a boiler and never call upon the cover.”

He adds: “Hometeam 50 is also a direct challenge to a market that is dominated by British Gas with a fair, open and rewarding product that’s hard to better.”

Npower says it polled customers and found that 78% wanted cashback for unclaimed policies.

The energy supplier has also launched Sign Online 18, an online tariff that it says can save customers £330 on dual fuel bills if they manage their bills online. The tariff is being promoted through a separate online campaign.

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