India Mobile Phone Insurance Market By Phone Coverage (New Phone, Refurbished), By Coverage (Physical Damage, Electronic Damage, Theft Protection, Virus Protection & Others), By Distribution Channel (Mobile Operators, Device OEMs, Retailers, Online & Others), By End User (Corporate, Personal), By Region, Competition Forecast & Opportunities, 2021-2031F

Market Overview

India Mobile Phone Insurance Market was valued at USD 2.62 Billion in 2025 and is expected to reach USD 5.70 Billion by 2031 with a CAGR of 13.88% during the forecast period. The India Mobile Phone Insurance Market is a burgeoning sector within the country's insurance industry, driven by the widespread adoption of smartphones and the increasing reliance on these devices in daily life. This market provides protection and financial security to smartphone users against various risks and damages. The India Mobile Phone Insurance Market has seen remarkable growth in recent years, reflecting the nation's status as one of the world's largest smartphone markets. India boasts a large and growing base of smartphone users. With increasing disposable incomes and affordable smartphone options, more people are purchasing these devices, making mobile phone insurance more relevant and essential. The market offers a variety of coverage options, including protection against theft, accidental damage, liquid damage, screen cracks, and more. Consumers can choose plans that align with their specific needs and budgets. The future of the India Mobile Phone Insurance Market appears promising. As smartphones continue to play an increasingly vital role in daily life, the demand for mobile phone insurance is expected to rise. Insurance providers are likely to introduce more innovative and tailored coverage options to meet the evolving needs of smartphone users, ensuring that they can safeguard their valuable devices and maintain uninterrupted connectivity. In 2023, the India Mobile Phone Insurance Market reached USD 1.87 billion. Flipkart has been a significant player in this market with its Complete Mobile Protection program, offering insurance coverage for mobile phones. This program provides coverage for accidental damage, broken screens, liquid damage, and hardware/software malfunctions. The insurance can be purchased at the time of the mobile phone purchase, starting from Rs. 99 according to Flipkart. 

Key Market Drivers

Rapid Growth in Smartphone Penetration and Premium Device Adoption

India is witnessing an exponential surge in smartphone users, driven by increasing affordability, expanding 4G/5G infrastructure, and a digitally active youth demographic. As of 2024, over 750 million smartphone users are estimated in India, with a growing shift towards mid-range and premium devices (₹20,000+). With rising costs of smartphones from brands like Apple, Samsung, and OnePlus, consumers are becoming more cautious about potential damage, theft, or malfunction—making insurance coverage increasingly attractive. Moreover, with the increasing use of smartphones for essential tasks like banking, education, and health monitoring, mobile devices are now seen as critical assets rather than luxury items. Consumers are therefore more willing to protect these devices, especially in Tier I and Tier II cities where income levels and digital literacy are rising. This growing base of premium smartphone users is creating a fertile ground for the mobile phone insurance market. Additionally, smartphone manufacturers and e-commerce platforms have started bundling insurance with device purchases, making it more accessible and affordable. This integration is further supported by the introduction of user-friendly, tech-enabled claim processes via apps and AI-driven platforms, helping insurers scale up and capture more market share.

Increasing Incidences of Device Theft, Loss, and Accidental Damage

The increasing frequency of mobile theft, screen damage, water damage, and battery failures has made Indian consumers more aware of the importance of mobile phone insurance. According to various industry sources, over 25% of smartphone users in India experience device damage within the first year, especially cracked screens, which are the most common claims. Given the high repair costs for mid-range and premium phones—ranging from ₹5,000 to ₹25,000 or more—insurance coverage offers financial relief and peace of mind. Urban centers, which are highly populated and have higher rates of theft, are particularly strong markets for mobile insurance services. Moreover, daily commutes, travel, and frequent use of smartphones in high-risk environments (e.g., construction, logistics, delivery) heighten the risk of accidental damage. This makes insurance not just a luxury but a practical necessity. Additionally, users involved in mobile gaming or content creation tend to overuse their devices, leading to more wear and tear. This behavioral trend is also encouraging consumers to opt for protection plans. Companies are responding with flexible plans covering theft, liquid damage, mechanical failure, and even international claims. The growing ecosystem of repair centers and app-based support services also ensures faster turnaround and boosts consumer trust, driving greater uptake of mobile phone insurance policies across user segments.

Strategic Tie-ups and Digital Distribution by OEMs, Telcos & Insurtech Players

The India mobile phone insurance market has been propelled significantly by strategic partnerships between OEMs (Original Equipment Manufacturers), telecom providers, e-commerce platforms, and insurtech companies. These collaborations enable wider, faster, and more targeted distribution of insurance products. For instance, Flipkart, one of India's leading e-commerce platforms, collaborated with Bajaj Allianz General Insurance to provide mobile phone insurance to its customers. This partnership allows Flipkart users to purchase mobile insurance policies directly through the platform, ensuring a seamless and convenient experience. The insurance plans cover accidental damage, theft, and other risks, offering protection to consumers against unforeseen events. By integrating insurance offerings into its ecosystem, Flipkart aims to enhance customer satisfaction and trust, while also tapping into the growing demand for mobile protection services in India. Telecom operators like Airtel and Jio have also launched device protection services for their postpaid customers, offering plans integrated with monthly bills. This bundling of mobile insurance with telecom services improves accessibility, especially for semi-urban and rural consumers who may not otherwise explore standalone insurance options. Insurtech firms like OneAssist, Servify, OnsiteGo, and Digit Insurance are leading innovations in digital claim settlement, app-based plan activation, real-time device diagnostics, and automated service tracking. Their user-friendly platforms reduce the friction traditionally associated with insurance claims, especially among millennials and Gen Z. With India's push toward digital financial services and the growing popularity of UPI, e-KYC, and online payments, digital distribution of mobile insurance has become seamless. These multi-channel strategies and customer-centric tech solutions are expected to be key drivers of sustained market expansion in the coming years.

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Key Market Challenges

Low Awareness and Adoption Rates

One of the most critical challenges is the low awareness and understanding of mobile phone insurance among Indian consumers, particularly in semi-urban and rural areas. Despite rising smartphone penetration, many users are unaware that insurance is available or misunderstand its benefits and coverage terms. Mobile insurance is often perceived as an unnecessary or luxury expense, especially for low- to mid-range phone users. Many consumers also mistakenly assume that warranties cover accidental damages, which they do not. As a result, they avoid purchasing insurance altogether. Even those who are aware often hesitate due to concerns about complicated claim procedures, hidden exclusions, or limited coverage. Furthermore, cultural attitudes toward insurance in India still lean toward traditional areas like life, health, or motor insurance, with mobile or gadget insurance seen as a low priority. This results in low policy penetration and limited renewal rates. To overcome this, insurers need to invest in consumer education, clear communication of benefits, and simplified onboarding processes that demonstrate real value.

High Claim Fraud and Misuse

The India mobile phone insurance market faces a significant challenge in the form of fraudulent claims. These include false theft reports, intentional damage, or the use of counterfeit documents to file claims. According to industry estimates, a substantial percentage of claims, particularly related to theft and damage, involve some level of misrepresentation or fraud. This misuse leads to increased operational costs for insurers, who must invest in fraud detection technologies, extended verification processes, and legal support. It also causes delays in genuine claim processing, hurting customer satisfaction and damaging trust in the system. To mitigate this, insurers often implement strict claim validation protocols, which can sometimes lead to genuine claims being rejected or delayed—creating a negative perception among policyholders. The lack of centralized databases or a unified mobile insurance registry also makes it difficult to detect repeat offenders or blacklisted devices across different insurers. The challenge, therefore, lies in striking a balance between fraud prevention and customer convenience. Robust fraud analytics, IMEI tracking, blockchain-backed claim validation, and collaboration with telecom providers could help address this issue in the long term.

Fragmented Market and Lack of Standardization

The Indian mobile phone insurance market is highly fragmented, with a wide range of providers including OEMs, third-party insurers, telecom operators, and insurtech startups—all offering varied coverage terms, pricing models, and claim procedures. This lack of standardization creates confusion among consumers and undermines trust in the market. Each provider has its own definitions of “accidental damage,” “liquid damage,” or “theft,” as well as differing claim limits, processing times, and repair policies. As a result, customers often struggle to compare plans effectively or are misled by unclear terms and exclusions. Moreover, inconsistent service quality—such as poor repair work, delayed service, or lack of replacement devices—further damages the credibility of mobile phone insurance in India. This inconsistency is especially prevalent among smaller players that lack robust infrastructure or service partnerships. The absence of clear regulatory guidelines specifically tailored to mobile or gadget insurance also contributes to the fragmented environment. A unified framework from regulatory bodies like IRDAI (Insurance Regulatory and Development Authority of India) could promote standardization, transparency, and fair practices across the industry. Until then, fragmentation will continue to hinder customer confidence and restrict long-term growth.

Key Market Trends

Growing Demand for Comprehensive Coverage

One of the prominent trends in the India mobile phone insurance market is the growing demand for comprehensive coverage. Traditionally, mobile phone insurance primarily covered accidental damage and theft. However, consumers are now seeking broader coverage options that include protection against various other risks, such as water damage, software malfunctions, and even screen cracks. This shift is driven by the increasing cost of smartphones and the realization that they are not just communication devices but also essential tools for work, entertainment, and daily life. The implications of this trend are significant for insurance providers. To meet the evolving needs of consumers, insurance companies are diversifying their product offerings. They are introducing more comprehensive insurance plans with higher coverage limits and additional features like data protection and extended warranties. This trend not only benefits consumers by providing them with greater peace of mind but also presents new revenue opportunities for insurance providers in a competitive market.

Digitalization and Online Distribution Channels

The second notable trend in the India mobile phone insurance market is the increasing reliance on digitalization and online distribution channels. With the rise of e-commerce and digital platforms, consumers are more inclined to purchase insurance online, making the process quick and convenient. This shift is accelerated by the COVID-19 pandemic, which highlighted the importance of contactless transactions and remote service delivery. Insurance companies are capitalizing on this trend by investing in user-friendly mobile apps and websites that allow customers to easily purchase and manage their policies. Additionally, they are leveraging data analytics and artificial intelligence to provide personalized insurance recommendations and streamline claims processing. This digitalization not only enhances the customer experience but also helps insurers reduce operational costs and improve efficiency. Furthermore, online aggregators and comparison platforms are gaining popularity in the Indian market, enabling consumers to compare various insurance options and choose the one that best suits their needs and budget. This trend fosters competition among insurers and drives innovation in policy offerings and pricing strategies.

Collaborations with Smartphone Manufacturers

The third trend shaping the India mobile phone insurance market is the increasing collaborations between insurance companies and smartphone manufacturers. Smartphone manufacturers recognize the value of offering insurance as part of their product ecosystem, as it enhances customer loyalty and provides an additional revenue stream. Consequently, many smartphone brands are partnering with insurance providers to offer bundled insurance packages at the point of sale. These partnerships often result in customized insurance solutions that cater to the specific needs of a particular smartphone model. For instance, insurance plans may include coverage for unique features or components of a smartphone, such as specialized camera lenses or foldable screens. This trend not only benefits consumers by simplifying the insurance purchase process but also strengthens the relationship between smartphone brands and their customers.

Segmental Insights

Phone Coverage Insights

In the India Mobile Phone Insurance Market, new phone coverage was the dominant segment, accounting for a major share of the market. This trend is largely driven by increasing smartphone adoption, particularly of mid-range and premium models, which are more susceptible to accidental damage and theft due to their high value. Consumers purchasing new devices are more inclined to insure them immediately, especially during the point of sale, when insurance is actively offered by retailers, OEMs, or e-commerce platforms. Many smartphone manufacturers and online retailers now bundle insurance as an optional add-on during checkout, making it highly accessible for new phone buyers. Additionally, the emotional and financial investment in a newly purchased device makes customers more cautious, leading to a higher uptake of insurance plans. These plans often cover accidental damage, liquid spills, screen damage, and mechanical faults, which are common in the first year of usage. Moreover, new phones come with fewer pre-existing issues, reducing risk for insurers and allowing them to offer more affordable premiums. With India’s smartphone market continuing to expand—especially in Tier I and Tier II cities—the dominance of new phone insurance is expected to persist, supported by growing digital distribution and increasing awareness.

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Regional Insights

The North region of India has emerged as a significant contributor to the growth of the India Mobile Phone Insurance Market, driven by increasing smartphone adoption, rising disposable incomes, and expanding urbanization. Major states like Delhi, Uttar Pradesh, Punjab, Haryana, and Rajasthan are witnessing a surge in demand for mid- to high-end smartphones, especially among young professionals, students, and small business owners. Delhi-NCR, in particular, is a hub for digital consumption and has a tech-savvy population that actively seeks protection plans for their gadgets. With high population density and greater risk of theft or accidental damage, consumers in this region are more inclined to invest in insurance plans at the time of purchase. Additionally, North India has a strong presence of retail chains, service centers, and e-commerce penetration, which facilitates easier access to insurance products and after-sales support. Partnerships between smartphone brands, local retailers, and insurtech firms are further strengthening distribution channels in this region. The region also benefits from growing financial awareness and digital literacy, making it easier to market and sell mobile insurance through online platforms and apps. With a strong ecosystem and rising smartphone penetration, North India is expected to continue playing a key role in shaping the future of the mobile phone insurance market.

Recent Developments

• In 2024, Apple launched the iPhone 16 Pro and Pro Max in India, prompting DigitInsure to introduce specialized mobile insurance policies tailored for these high-end devices. These comprehensive plans offer full protection against accidental damage, theft, and technical malfunctions. By addressing the growing need to secure premium smartphones, this initiative significantly expanded the reach of the mobile phone insurance market in India.
• In 2024, Truecaller, in partnership with HDFC ERGO, introduced Fraud Insurance under the Cyber Sachet Insurance scheme. This feature is integrated into the annual premium subscription of the Truecaller app for both Android and iOS users in India. The insurance offers financial coverage of up to ₹10,000 against monetary losses arising from scams linked to the user’s Truecaller-registered mobile number. Available exclusively as an add-on to Truecaller Premium, the insurance is strictly for individual use, enhancing protection in an increasingly fraud-prone digital environment.
• In 2025, esure partnered with Caura to launch an innovative mobile insurance platform, offering an all-in-one app for managing motor and home insurance, car taxes, tolls, and more. Built in just four months, the app aims to simplify insurance and vehicle-related tasks. Future updates will include EV charging locators and fuel price comparisons, enhancing user convenience.

Key Market Players

• Syska Gadget secure
• OneAssist
• SyncNscan
• Times Global
• Onsite Go Mobile Insurance
• Acko Mobile Insurance
• Airtel Secure Mobile Insurance
• Flipkart Complete Mobile Protection(CMP) Insurance Plan
• Warranty Bazaar Mobile Insurance  
• National Insurance Company Limited

Report Scope:

In this report, the India Mobile Phone Insurance market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Mobile Phone Insurance Market, By Phone Coverage:

o   New Phone

o   Refurbished       

• India Mobile Phone Insurance Market, By Coverage:

o   Physical Damage

o   Electronic Damage

o   Theft Protection

o   Virus Protection

o   Others

• India Mobile Phone Insurance Market, By Distribution Channel:

o   Mobile Operators

o   Device OEMs

o   Retailers

o   Online

o   Others  

• India Mobile Phone Insurance Market, By End Users:

o   Corporate

o   Personal

• India Mobile Phone Insurance Market, By Region:

o   North

o   West

o   South

o   East  

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Mobile Phone Insurance market.

Available Customizations:

India Mobile Phone Insurance Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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