| Coverage terms - phasing examples |  |
| Phasing can be determined by: Period: Phase 1 takes two years Phase 2 takes two years Phase 3 takes one year Counter limit of the main counter of the affected reference serialized item: Phase 1 up to 1,000 kms Phase 2 up to 5,000 kms Phase 3 up to 10,000 kms A combination of period and counter limit: Phase 1 takes two years or up to 1,000 kms Example 1 Phase 1: Ceiling cost covering method with a ceiling of USD 500. As a result, the first USD 500 are fully covered by the service contract or service contract template. Phase 2: Coverage Percentage cost covering method with a percentage of 10 percent. Of the costs above USD 500, 10 percent is covered by the service contract or template. Example 2
Phase | Duration | Coverage | Price
1 | 2.5 yr | 50% Disc. | 2.5/4)*(0.50*100)= 31.25
1 | 1.0 yr | 25% Disc. | (1.0/4)*(0.25*100)= 6.25
1 | 0.5 yr | 10% Disc. | (0.5/4)*(0.10*100)= 1.25
Total | 4.0 yr |  | 38.75
Related topics Coverage terms - phased vs. non-phased |