New Delhi:
E-commerce major Walmart-backed Flipkart Sunday said it is foraying into the insurance segment after securing a corporate agent license.To begin with, Flipkart has partnered Bajaj Allianz General Insurance to offer customised insurance solutions to power its mobile phone protection programme for all leading mobile phone brands that are sold on its platform, Flipkart said in a statement.
It added that under the programme, it will offer both cash payout option or free pick up, service and drop convenience to customers.The insurance offering will be available from October 10, the start of Flipkart's The Big Billion Days (TBBD).
"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." Flipkart Senior Vice President and head of Fintech Ravi Garikipati said.
Tapan Singhel, MD and CEO of Bajaj Allianz General Insurance Co, said the two companies are starting with the complete mobile protection plan (CMP), adding value for millions of customers.
Estimates suggest about 36 per cent of mobile phone users in India own smartphones. A major worry for customers is damaging their screens or having their phone stolen — challenges that the offering aims to address.
The statement said the insurance will be valid for a year, covering accidental, screen, and liquid damage along with theft of the protected mobile phones.
Customers will be able to purchase the insurance-powered CMP plan at the same time as they buy the mobile phone for Rs 99 onwards. Once the customer shares the required details at checkout, the policy will be activated from the day of delivery.
Another E-commerce powerhouse Amazon is entering the Indian insurance market, beginning with life, health, and general insurance products.
The Seattle-based retail and technology giant has filed with India’s Register of Companies to enter the business of soliciting, procuring and servicing insurance as a corporate agent.
India’s insurance industry is expected to be worth US$280 billion by 2020, a recent study by Assocham-APAS said. However, insurance penetration remains quite low at 3.7% in 2017, improving by only around one percentage point from 2001 (2.71%).
With the Indian market’s current situation, there is a lot of room to expand. As a result, other tech-focused companies are also targeting the world’s second-most populous country. Paytm, which is backed by Asian giants Alibaba and Softbank, already has a corporate agency licence.