Leading e-tailer Flipkart on Sunday said it had tied up with Bajaj Allianz General Insurance to offer insurance to products like mobiles bought on its online shopping platform from October 10. “We will offer customized insurance solutions to power our complete mobile protection programme for all leading mobile brands sold on our platform with Bajaj Allianz,” said the city-based company in a statement here.
The decade-old company, in which world retail giant Walmart acquired majority stake in May, secured a corporate agent license from Bajaj Allianz to provide insurance to its customers. Walmart completed acquisition of 77 percent equity stake in Flipkart for $16 billion on August 18.
Touted to be the first, the insurance will be in cash payout option or free pick-up, service and drop convenience to customers. “The insurance will be available from October 10, coinciding with our ‘The Big Billion Days’ festival offer to serve customers who shop during the event,” said the statement.
Global market intelligence firm IDC estimated that the smartphone market in India would continue to grow in double digit in 2018, with Flipkart’s share of online phone sales at 65 percent. “Insurance is our logical next move in providing consumers with after-sales care for their phones. The plan, from purchase to claim, will be integrated into our online platform,” said Flipkart Senior Vice-President Ravi Garikipati in the statement.
Consumer data insights and tech will enable insurance partners to underwrite better and help in improving operating efficiencies for new-age products. According to a study, 36 per cent of mobile phone users across the country own smartphones. The worry for customers is damaging their screens or having their phone stolen.
“Other than the warranties offered by manufacturers, there are no micro-insurance offerings for customers,” asserted the statement. Bajaj Allianz Chief Executive Tapan Singhel said partnership with Flipkart to give complete protection plan would add value to the e-tailer’s customers.
“Customers will be able to purchase the insurance when buying the mobile phone at a nominal price starting from Rs 99. The policy will activate from the day of delivery,” added the statement. The insurance plan, valid for a year, covers accidental, screen, liquid damage and theft.
For claims, a customer will have a choice to return the phone for fixing or opting for a cash payout that will be deposited in his/her bank account. As the country’s largest e-commerce player, the 11-year-old Flipkart group includes Myntra, Jabon and PhonePe. It offers 80 million products in 80 categories.
In fiscal 2017-18, Flipkart recorded Gross Merchandise Value (GMV) of $7.5 billion and net sales of $4.6 billion, representing 50 per cent year-on-year growth. With over one-lakh sellers, Flipkart offers about 80 million products across 80 categories, including smartphones, books, media, consumer electronics, furniture, fashion and lifestyle.