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Only 6–8% of Indian smartphone users have active protection plans: OneAssist study
Our read
India's underinsured smartphone base will turn device protection into a key retail-finance and refurbished-phone trust layer, but adoption will scale only when coverage is embedded, inexpensive and claims are visibly reliable.
For operators
Bundle low-cost, transparent protection plans at point of sale and simplify claims to convert India’s large underinsured smartphone base, especially as longer replacement cycles raise repair risk.
Watch
Major OEM or marketplace makes accidental-damage protection opt-out rather than opt-in at checkout.
The report,
OneAssist-Hansa Research study finds only 6-8% of Indian smartphone owners have active protection despite high awareness and damage incidence, highlighting cost, trust and claims barriers. Warranty availability could also unlock growth in India’s refurbished-phone market.
Reported figures
From the report. Source details below
| 54% of non-metro consumers bought pre-owned smartphones versus | 30% in metros |
|---|
Also in the report
- 84% awareness of device protection plans
- 72% suffered accidental damage
- 82% dropped phones at least once
- Over 650 million smartphone users in India
- Average device prices rose 40-50% in recent years
- Replacement cycle approximately 40 months, versus two years a decade ago
- 70% of affected users reported cracked screens
- 44% of non-adopters cite cost concerns
- Four in ten consumers doubt fair claims handling
- 40% have bought a pre-owned smartphone
- 70% say protection matters more for pre-owned phones
- 30% would consider pre-owned devices if warranties were available
Other figures
- 1,260 respondents
Why it matters to operators
Seek partnerships or acquisitions across insurers, repair networks, retailers and refurbished-device platforms, where credible warranties could improve resale demand and attach rates.
What to watch next
- Protection-plan pricing falls below a visible threshold relative to handset EMI or annual repair cost.
- Claims approval rates, turnaround-time guarantees or cashless repair coverage are publicly disclosed and improve.
- Growth in certified-refurbished listings with bundled warranties, battery-health disclosure and trade-in guarantees.
- Regulatory scrutiny or consumer complaints regarding denied claims, exclusions or mis-selling.
- Rising average smartphone selling prices and longer replacement cycles increase the financial pain of accidental damage.
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Watch for OEM, fintech and telecom bundles that include device protection within EMI, subscription, prepaid recharge or trade-in offers rather than selling standalone plans.
- Assess claims turnaround time, deductible levels, exclusion language and cashless repair-network coverage; these are likely to matter more than awareness spending.
- Monitor warranty-backed refurbished launches from marketplaces, OEM-certified resale programs and organized refurbishers as a leading indicator of secondary-market expansion.
- Expect retailers to use protection plans as a higher-margin revenue stream as handset margins and replacement-cycle volumes remain pressured.
The counter-case
The case against this reading — not reported by the source.
The 6–8% figure may overstate an addressable protection-plan opportunity: many consumers may rationally self-insure because repair costs are manageable, devices are covered by OEM warranties for defects, or plan exclusions, deductibles and claim friction make standalone protection poor value. High reported accidental-damage incidence does not establish willingness to pay recurring premiums, especially in a price-sensitive market where replacement and informal repair remain viable alternatives.
The source
Published
NDTV Profit re-reported it (no new facts)
First seen