Flipkart rolls out insurance programme for smartphones

Flipkart rolls out insurance programme for smartphones
Photo Credit: Photo Credit: Reuters
8 Oct, 2018

Customers shopping on Walmart-owned e-commerce company Flipkart can now avail of insurance when buying smartphones on the platform.

The company, which recently ventured into the insurance business, has secured a corporate agent licence, a company statement said.

Flipkart runs its insurance business in partnership with Bajaj Allianz General Insurance. It will initially offer customised insurance solutions for smartphones sold on its platform, the statement added.

The smartphone insurance programme will offer a cash payout option or free pick up and drop service to customers.

VCCircle was the first to report about Flipkart’s plans to sell insurance products on its platform.

The smartphone insurance plan titled ‘Complete Mobile Protection’ will cover accidental, screen and liquid damage along with theft. The insurance will be valid for a year and plans start from Rs 99. Customers can buy the insurance product at the same time as they buy their mobile phones.

According to the earlier VCCircle report which cited the firm’s filings with the Registrar of Companies, Flipkart plans to initially sell products in general, life and health insurance and will later venture into other categories such as motor insurance as well.

Flipkart, which sees this segment as a potential revenue spinner, is betting on its large customer base to grow its insurance business. Besides, it is also counting on its large volume of consumer insights data and its customer experience offerings, the company said in the filings.

Flipkart’s biggest rival Amazon offers insurance through its portfolio company Acko while Paytm has acquired a similar licence from the Insurance Regulatory and Development Authority.

The homegrown e-commerce unicorn recently entered the refurbished goods business, where it started by selling second-hand smartphones, tablets, laptops and other electronic items. Named 2GUD, the refurbished goods marketplace will function independently of Flipkart.com and will offer products that carry a warranty of 3-12 months. It’s not clear if Flipkart will eventually extend the insurance programme to its refurbished goods business.

Meanwhile, Flipkart has reportedly kicked off discussions with new strategic investors to raise fresh capital months after being acquired by US retail giant Walmart.

Walmart had announced its decision to buy a stake of up to 77% in Flipkart in May after months of speculation around the deal.