Flipkart enters insurance market: here's how you can get one

Flipkart has stepped into insurance after securing a corporate agent license. Initially, Flipkart will offer customised insurance solutions to power its Complete Mobile Protection program for all leading mobile brands being sold on its platform in partnership with Bajaj Allianz General Insurance. The program will offer both cash payout option or free pick up, service and drop convenience to customers.

The insurance will be available from October 10th, the start of Flipkart’s The Big Billion Days (TBBD), to serve the millions of customers who shop during the event. According to IDC, the smartphone market in India will continue double-digit growth in 2018 and Flipkart’s share of online phone sales is currently about 65%.

Reacting to the latest achievement, Ravi Garikipati, Sr. VP and head of Fintech, Flipkart said, “In line with our customer-first policy and as the market leader in this segment, insurance felt like 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. We want to put this choice in their hands and give them the chance to soothe their worries by protecting their valued purchase, if they so desire.”

Estimates suggest about 36% of mobile phone users in India own smartphones. The biggest worry for customers is damaging their screens or having their phone stolen, both of which are prevalent. Other than the warranties offered by manufacturers, there are no large-scale microinsurance offerings for customers, who may not even know where to begin looking for one.

How it works

CMP intends to instill post purchase assurance in the minds of customers, which is primarily considered a huge barrier to get offline customers to buy mobiles online. Designed to give complete protection against a variety of perils and damages, internal & external, the insurance will be valid for a year, covering accidental, screen, and liquid damage along with theft.  

Customers will be able to purchase the insurance powered Complete Mobile Protection plan at the same time as they buy the mobile phone, at a nominal price point starting from Rs 99. Once the customer shares the required details at checkout, the policy will be activated from the day of delivery.

The claims have also been simplified, where the customer will reach out to Flipkart via the app, email, or phone call and will have a choice between returning the phone for fixing or opting for a cash payout which will then be deposited in their Flipkart-registered bank account or any other account owned by the customer.