Flipkart planning to sell insurance for smartphones this Diwali

Flipkart the popular e-retailer will enter into insurance segment this Diwali, with the offering of a complete protection plan to customers who buy smartphones on is platform.

Flipkart has secured a corporate agency licence from Bajaj Allianz General Insurance for the scheme. Customers who buy the plan will be offered a cash payout, or a free pickup, service and drop facility if their devices get damaged or stolen.

“It (insurance) is the logical next step in providing consumers with excellent after-sales care for their phones. The plan, from purchase to claim, will be completely integrated into our online platform, which customers are already familiar with and trust,” said Ravi Garikipati, senior vice-president and head of Fintech at Flipkart.

The foray into offering micro-insurance, customised specifically for the products it sells, is the second major step to establish itself as strong player in the financial services space. Last month, the company announced to offer credit of up to Rs 60,000 to its customers to purchase any products on its platform, without a requirement of a credit/debit card.

Prices for Flipkart’s mobile protection insurance scheme will start at as low as Rs.99 for one year, which will be operational the day the device is delivered to a customer. In the case of a claim, the customer will be able to complete the process entirely through Flipkart, either on its app, email or phone call, taking away the hassle of dealing directly with the insurer.

Presently, smartphone as a category drives the biggest chunk of sales on Flipkart’s platform.

Garikipati said the foray into the e-commerce specific micro-insurance segment would set the stage for Flipkart to sell life and general insurance to its customers. However, the company will not turn into a marketplace for selling insurance such as PolicyBazaar, BankBazaar or CoverFox, but would rather curate policies from a few selected partners.