Mumbai: Amazon has entered the insurance distribution business in India, tying up with general insurance startup Acko to sell motor vehicle policies on its Pay platform.
Amazon’s entry as a corporate agent is in line with its plan to become a full-fledged financial services platform. Amazon Pay currently offers UPI, wallet and co-branded credit card services to users.
Payment rivals Paytm and Walmart-owned PhonePe are also expanding the range of insurance products on their platforms through tie-ups with insurers.
Amazon, based in Seattle, promises to offer competitively priced products on both the standardised third-party and own-damage motor insurance policies, claiming that customers can get their vehicles insured within two minutes. Other value-added services include three-day assured claim servicing and a one-year repair warranty in select cities.
“We will offer a product which is very competitively priced and easy to buy like our services on the e-commerce side of things,” said Vikas Bansal, director and head of financial services at Amazon Pay India.
For Acko, which primarily caters to motor insurance, the tie-up is expected to bring scale and reduce dealership commissions, said Varun Dua, CEO of Acko General Insurance.
Amazon led a $12 million funding round in Acko in 2018. Other investors include Accel Partners, SAIF Partners, Catamaran Ventures and Binny Bansal.