NEW DELHI: After taking a crack at health insurance, Flipkart-owned payments company PhonePe has now added car and bike insurance to its product portfolio in association with Bajaj Allianz General Insurance.
Two-wheeler insurance on PhonePe starts at ₹482, while car insurance at ₹2,072.
PhonePe users can buy car and bike insurance from the newly added Motor Insurance page under Insurance->MyMoney. The company claims users can buy plans within 2 minutes. After the payment has been made, policy documents can be accessed instantly on the app.
To insurance plans more appealing, PhonePe has bundled it with cashless repair services available through a countrywide network of third party garages associated with Bajaj Allianz General Insurance. Buyers also get instant claim settlement in under 20 minutes.
Buyers can customise their plans and choose from a bunch of value added services such as zero depreciation, 24X7 roadside assistance, and engine protection.
Zero depreciation covers the vehicle regardless of the annual depreciation in the value of its parts and pays for the entire claim amount.
“Motor insurance is necessary and provides protection during accidents. Still, we have many vehicles across India, both two-wheelers and four-wheelers, which are either not insured or are underinsured,” says Sourabh Chatterjee, president & head – IT, Web Sales & Travel at Bajaj Allianz General Insurance.
According to a recent HDFC Securities report, demand for automobiles has returned to pre-covid levels across segments, including two-wheelers and passenger cars.
Gunjan Ghai, VP & Head of Insurance at PhonePe, feels there is tremendous headroom for growth in the motor insurance segment as two-wheelers account for 70% of the vehicles in the country. “This is in line with our goal to be a one-stop destination for all insurance needs of our customers. We are offering a simple, quick and convenient way to buy motor insurance while also enabling smooth renewals,” Ghai adds.
Acquired by Flipkart in 2016, PhonePe, in addition to offering digital wallets and UPI payments, also offers mutual funds and insurance products like tax-saving funds, liquid funds, international travel insurance and several health plans revolving around covid-19 care.
The company recently announced that it sold over 5 lakh insurance policies between April and August. Many of the buyers belonged to tier 2,3 cities and were buying insurance for the first time.