Vodafone Idea's new prepaid plans offer free smartphone theft insurance
What's the story
Vodafone Idea (Vi), India's third-largest telecom operator, has launched new recharge-linked theft and insurance plans for its prepaid subscribers. The initiative is part of Vi's strategy to expand its digital financial services portfolio and reduce subscriber churn. The move also aims to attract more users to its network and increase the average revenue per user (ARPU) amid stiff competition from Reliance Jio and Bharti Airtel.
Plan details
New plans offer varying durations of handset insurance
The new scheme is available across three prepaid plans from Vi. The ₹61 plan offers a 30-day validity for handset insurance, while the ₹201 and ₹251 plans provide 180-day and 365-day validity, respectively. Each plan provides insurance coverage of up to ₹25,000. The ₹61 plan also offers 2GB data for 15 days, while the other two plans provide 10GB data each month.
Customer protection
Vi is addressing major customer concern of losing a smartphone
Vi is addressing the major customer concern of losing a smartphone, which is not covered by conventional damage-only insurance policies. According to a report by the Ministry of Statistics and Programme Implementation (MoSPI), around 85.5% of households in India own at least one smartphone. An industry report also states that the handset insurance market is expected to touch $2.6 billion this year, growing at nearly 14% annually.
Market strategy
Vi's innovative approach to insurance coverage
Vi's new plans integrate insurance coverage into everyday prepaid packs, addressing market gaps related to high premiums, convenience, and accessibility. The company says its offering counters the high premiums of traditional insurance by embedding the cost into affordable, incremental recharge payments. This makes protection more accessible for a wider customer base. Vi also promises a simplified digital-first journey for claims process with minimal paperwork and faster resolution times.