Amazon has now entered the insurance distribution business in India and has tied up with general insurance startup Acko to sell motor vehicle policies on its Pay Platform.
Amazon currently offers UPI, wallet and co-branded credit card services to users and has now entered to become a full-fledged financial services platform. Now, every platform like Flipkart, Paytm and Amazon are scaling up insurance businesses with the promise of low cost, low commitment and fully digital services as demand of risk coverage amidst the COVID-19 pandemic.
Amazon has applied for an insurance brokerage license which will allow it to become an online aggregator and distributor of products. The company promises to offer competitively priced products on both the standardized third party and own damage motor insurance policies, claiming that customers can get their vehicles insured in two minutes. They will also provide three day assured claim servicing and a one year repair warranty in selected cities.
Vikas Bansal, director and head of financial services at Amazon Pay India said, “We will offer a product which is very competitively priced and easy to buy like our services on the e-commerce side of things.”
