Cracked screens account for the most common damage outcome, reported by 70 per cent of affected users | Photo Credit: REUTERS

Despite 84 per cent of Indian smartphone owners being aware of device protection plans, fewer than one in 15 carries active coverage, a disconnect that a new industry study says is costing consumers dearly as device prices climb and repair bills mount.

InsurTech platform OneAssist, in partnership with Hansa Research, on Wednesday released findings from a 1,260-respondent nationwide study titled The Great Indian Smartphone Protection Crisis, revealing that while 72 per cent of consumers have suffered accidental damage and 82 per cent have dropped their phones at least once, current active protection plan adoption stands at just 6–8 per cent.

The study pegs the gap between lifetime awareness and active coverage as the central crisis in a market of over 650 million smartphone users. Average device prices in India have risen 40–50 per cent in recent years, and the replacement cycle has stretched to approximately 40 months, up from two years a decade ago.

Cracked screens account for the most common damage outcome, reported by 70 per cent of affected users. Of all damage incidents, 36 per cent occur because a phone slips from a pocket or bag, making ordinary commutes the single biggest risk factor, outpacing water exposure (15 per cent), walking or running (13 per cent) and travel (12 per cent).

The emotional toll is also documented. The study found 35 per cent of respondents panicked immediately after dropping their phone, 24 per cent had a conflict with someone over the incident, and 15 per cent cancelled plans as a result. Women recorded a sharper panic response at 43 per cent, versus 33 per cent for men, and were also more prone to damage, 79 per cent reported accidental damage compared to 71 per cent of men.

On the supply side, the study identifies three structural barriers to adoption: cost concerns, cited by 44 per cent of non-adopters; limited understanding of plan benefits; and distrust of the claims process, with four in ten consumers doubting whether claims would be honoured fairly.

The refurbished device segment emerges as a parallel front. Four in ten Indians have purchased a pre-owned smartphone, with 54 per cent of non-metro consumers having done so versus 30 per cent in metros. Among those who have not bought pre-owned, 70 per cent say protection plans matter more for such devices than for new ones, and 30 per cent say warranty availability would make them consider a pre-owned purchase, a figure that signals protection as a market-unlocking mechanism for the circular economy.

“...a large number of consumers continue to navigate device ownership without any form of protection while constantly worrying about damage and breakdown...,” said Subrat Pani, Co-founder, OneAssist, adding that “...affordability, simplicity and trust...” remain the industry’s core challenge to resolve.

Published on August 19, 2026