PhonePe has introduced its firecracker insurance product for Diwali for the third consecutive year, offering medical coverage of up to ₹25,000 through fixed-premium plans. The Walmart-owned fintech platform provides the policy digitally on its app, with Aditya Birla Health Insurance (ABHI) serving as the underwriter.
The seasonal micro-insurance product is intended to provide financial support in case of firecracker-related incidents during the festive period. Customers can choose between two plan durations, although only one active variant is displayed on the PhonePe app at a time.
What the PhonePe firecracker insurance covers
The policy provides protection under three main benefits:
- Hospitalisation cover: Medical expenses are covered up to ₹25,000 for inpatient hospitalisation lasting more than 24 hours. The benefit applies to the primary policyholder, their spouse and up to two dependent children.
- Day-care treatment: Expenses of up to ₹25,000 are covered for minor procedures or burn treatment that require less than 24 hours of hospital admission. This benefit also covers the primary policyholder, spouse and up to two dependent children.
- Accidental death benefit: The primary policyholder is eligible for a fixed lump-sum payment of ₹25,000 in the event of accidental death.
Premium and validity of the plans
PhonePe is offering the insurance in two variants designed for different festive schedules:
- 30-day plan: Available from October 15 at a premium of ₹21, this plan provides coverage until November 14 and remains valid for 30 days from the date of purchase.
- 11-day plan: Priced at ₹11, this option becomes available closer to Diwali on November 5 and offers coverage until November 15. It is valid for 11 days from the date of purchase.
The sum insured under both variants is ₹25,000. Since only one plan is active on the platform at any given time, users will see the applicable option during the purchase period.
How to buy the policy on PhonePe
Customers can purchase the cover through the Insurance section of the PhonePe application. The process is designed to be completed digitally in under a minute, with coverage becoming available immediately after purchase.
- Open the PhonePe app and go to the Insurance section.
- Select Firecracker Insurance.
- Review the plan details, including the ₹25,000 sum insured and the applicable ₹11 or ₹21 premium.
- Check the insurer’s information and the detailed list of policy benefits.
- Enter the policyholder’s details and tap Proceed to Pay to complete the purchase.
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