NEW DELHI: Post covid-19 mobile payment apps have emerged as an important platform for selling and purchasing insurance plans, especially in tier 2-3 cities where many are buying insurance for the first time. Flipkart-owned Phone Pe, which has over 70% of users in tier 2 and 3 cities, has sold over 5 lakh insurance policies between April and August.
According to PhonePe, many of them were first time buyers and came from tier 2-3 cities such as Visakhapatnam, Jaipur, Ahmedabad, Nashik, Vijayawada and Aurangabad.
Until last year, recharges, booking movie tickets and contactless payments at stores and restaurants was the focus area for most payment apps. After covid-19, PhonePe like most of its rival apps started diversifying into other areas and introduced insurance and grocery shopping on its apps.
PhonePe added insurance products on its platform 9 months ago and currently has 5-6 plans such as covid-19 insurance, hospital daily cash, travel insurance, dengue & malaria insurance and personal accident cover.
Covid-19 plans were launched in April when the pandemic started to spread in India. It started at ₹156 and provided an insurance cover of ₹50,000 for people under 55 years of age.
Similarly, the Hospital Daily Cash insurance plan was launched in July to offer an assured amount to subscribers in case of hospitalisation due to injury or other illnesses including covid-19. It provided a cover of ₹500 per day to up to ₹5,000 per day at an annual premium starting at ₹130.
Dengue & malaria insurance was added in July as the cases of mosquito borne diseases increase during the rainy season.
“Customers continue to repose their trust in PhonePe as they find buying insurance on our platform affordable, simple to understand and easy. This is in line with our goal to be a one-stop destination for all insurance needs of our customers. We are in talks with multiple insurers and have many new products in the pipeline which will be launched in the coming months,” Hemant Gala, VP, financial services & payments, PhonePe said in a statement.