Phone Lost or Stolen? Vi Offers Rs 25,000 Handset Insurance with Prepaid Recharges

New Delhi: Vodafone Idea (Vi) has rolled out what it calls an industry-first offering for prepaid users in India, handset theft and loss insurance bundled directly with recharge packs. The plan applies to both Android and iOS phones and aims to protect users from one of the most common and expensive smartphone risks.

With this move, Vi says prepaid customers can claim insurance cover of up to Rs 25,000 if their phone is stolen or lost.

How much will this protection cost?

The insurance is not sold separately. It comes built into select prepaid recharges, starting at just Rs 61.

Vi has introduced three options:

• Rs 61 pack: Insurance valid for 30 days
• Rs 201 pack: Insurance valid for 180 days
• Rs 251 pack: Insurance valid for 365 days

Along with insurance, these packs also include data benefits.

Why is handset loss insurance important now?

Smartphones have become near-essential in every Indian home. According to a Ministry of Statistics and Programme Implementation (MoSPI) report released in May 2025, around 85.5 percent of households in the country own at least one smartphone.

At the same time, replacing a mid-range phone often costs between Rs 20,000 and Rs 25,000. Industry estimates suggest the handset insurance market could touch $2.6 billion this year, growing at nearly 14 percent annually.

Yet most existing insurance policies focus only on damage, not theft or loss,  leaving users exposed.

How is Vi trying to fix this gap?

Vi said that its new offering is designed to remove common barriers like high premiums and complicated paperwork. Since the insurance is tied to the prepaid recharge, customers don't need to buy a separate policy.

The claims process is digital-first and uses existing customer details, which the company says will help speed up settlements and reduce documentation hassles.

Who can opt for these plans?

The handset theft and loss insurance packs are available to Vi prepaid customers across India. The coverage applies to both Android and iOS devices and is activated along with the recharge.

Did the market react to this announcement?

Vi’s stock saw positive movement following the announcement. Shares rose nearly 3 percent during Monday’s trade to touch a 15-month high of Rs 12.02 on the BSE, even as broader markets stayed under pressure.

The stock has gained over 20 percent so far in December and has nearly doubled from its 52-week low touched in August.

What does this mean for prepaid users?

For prepaid customers, this marks a shift in how telecom services are packaged. A basic recharge now comes with financial protection for one of their most valuable personal devices.

Whether rivals follow suit could decide if handset insurance becomes a standard feature in India's prepaid market.