As Diwali approaches, PhonePe has brought back its short-term firecracker insurance policy for the third consecutive year, offering financial assistance for certain firecracker-related accidents. The digital insurance product provides coverage of up to ₹25,000 under fixed-premium plans, giving eligible customers an additional layer of financial protection during the festive season.
The policy is available through the PhonePe app and is underwritten by Aditya Birla Health Insurance. It is designed to cover specified medical expenses and other eligible losses arising from firecracker-related incidents, subject to the policy's terms and conditions.
What Does PhonePe's Firecracker Insurance Cover?
The seasonal insurance product includes three main benefits.
Hospitalisation expenses: The policy provides reimbursement of eligible medical expenses up to ₹25,000 for inpatient hospital stays exceeding 24 hours. This benefit covers the primary policyholder, their spouse and up to two dependent children.
Day-care treatment: Eligible medical expenses of up to ₹25,000 are covered for certain treatments, including burn-related procedures that require less than 24 hours of hospital admission. The benefit extends to the policyholder, spouse and up to two dependent children.
Accidental death benefit: The policy provides a fixed payout of ₹25,000 in the event of an eligible accidental death involving the primary policyholder. This benefit does not extend to other covered family members.
The maximum benefit available depends on the specific coverage provision and the circumstances of the incident. Customers should read the policy wording carefully to understand exclusions, claim requirements and eligibility conditions.
Premium Plans and Coverage Period
The insurance is offered in two variants intended to accommodate different festive schedules. Only one active plan is displayed on the app at a given time.
30-day plan
₹21
Coverage available from October 15 to November 14, 2026, subject to the policy's validity rules.
11-day plan
₹11
Scheduled to become available on November 5, with coverage offered until November 15, 2026.
Both plans offer a stated sum insured of ₹25,000. The applicable premium and coverage dates should be verified in the app before purchasing, as availability depends on the active plan and its conditions.
How the Insurance Works
The product is a short-term insurance policy intended specifically for the festive period. It is not a replacement for comprehensive health insurance, and the maximum stated cover should not be interpreted as an automatic payment for every incident.
Medical reimbursements depend on the applicable benefit, eligible expenses and documentation. The accidental death benefit is subject to the policy's terms and claim assessment.
How the Policy Is Offered Through the App
Customers can review the insurance product through the Insurance section of the PhonePe app. The displayed plan information includes the premium, sum insured, insurer details and coverage conditions. Buyers should check all these details before completing a transaction.
It is particularly important to understand the policy's exclusions, the definition of eligible firecracker-related incidents and the documents required to submit a claim.
Why Short-Term Festival Insurance Matters
Festivals often involve gatherings, travel and additional household activities, making personal safety and financial preparedness important considerations. A low-cost insurance policy may offer limited financial support for specified accidents, but it cannot eliminate the risk of injury or guarantee that every expense will be reimbursed.
People should follow local regulations and fire safety guidance during the festive season. Insurance is best viewed as a supplementary financial safeguard rather than a substitute for precautions.
PhonePe's 2026 offering provides a short-duration option with premiums starting at ₹11 and stated coverage of up to ₹25,000. Understanding the benefits, limits and exclusions before buying is essential to making an informed decision.
