PhonePe on Thursday, 22 October 2026, announced the return of its firecracker insurance for the third consecutive year, offering medical and accidental coverage of up to ₹25,000 at premiums starting as low as ₹11. Underwritten by Aditya Birla Health Insurance, the micro-insurance product is designed to protect users and their families from firecracker-induced mishaps during the Diwali festive season.

What the Policy Covers

The plan provides protection across three key areas. Hospitalisation Cover reimburses medical expenses up to ₹25,000 for inpatient stays exceeding 24 hours. Day-Care Treatment covers burn treatments or minor procedures requiring less than 24 hours of hospital admission, also up to ₹25,000. Finally, an Accidental Death Benefit pays a fixed lump sum of ₹25,000, applicable exclusively to the primary policyholder.

Hospitalisation and day-care coverage extends to the primary policyholder, their spouse, and up to two dependent children, while the accidental death benefit remains limited to the primary policyholder alone.

Two Plan Variants to Choose From

PhonePe has structured the product into two time-sensitive variants to align with different festive schedules. The 30-day plan, priced at ₹21, went live on 15 October and offers active coverage until 14 November. The 11-day plan, priced at ₹11, becomes available on 5 November — closer to Diwali — and provides coverage through 15 November. The platform displays only one active variant at any given time to avoid confusion at the point of purchase.

How to Buy the Policy on PhonePe

The purchase process has been designed to take under a minute. Users must open the Insurance section within the PhonePe app and select Firecracker Insurance. After reviewing plan details — including the ₹25,000 sum insured and the applicable premium — users can view insurer information and a full benefit breakdown before filling in policyholder details and tapping 'Proceed to Pay' to activate immediate coverage.

Context and Significance

Seasonal micro-insurance products of this nature remain relatively uncommon in India's retail insurance market, where low-ticket, short-duration policies have historically struggled with distribution. PhonePe's digital-first model, with its large user base, positions it to bridge that accessibility gap. This is the third year the product has featured on the platform, signalling sustained user demand during the Diwali period. The partnership with Aditya Birla Health Insurance as underwriter adds a regulated layer of credibility to the offering.

With Diwali approaching, the window to purchase the more affordable ₹11 plan opens on 5 November, giving last-minute buyers a narrow but viable coverage option.