Paytm to insure your wallet balance, ties up with Reliance General Insurance

Digital payments and commerce platform Paytm will now provide an insurance for the money stored in a customer's wallets, the company said Monday. Paytm's move comes at a time when there have rising instances of theft, loss of device and unauthorized access of a user’s wallet.
The insurance cover is being provided to users at no additional cost, Paytm said in a prepared statement.The Alibaba-backed Paytm has roped in Reliance General Insurance for this partnership, which will provide all its customers insurance of up to Rs 20,000 or the amount wallet balance, whichever is lower.
"This latest wallet insurance scheme will maintain our seamless payment experience while ensuring greater peace of mind for millions of consumers and merchants who have embraced Paytm in their daily lives,” said Krishna Hegde,VP at Paytm. The company did not disclose the size of insurance deal or the premium it will have to pay.
Incidentally,the government recently released the draft guidelines for e-wallets which focuses on protection of consumer's financial data along with introducing a strong grievance redressal system at wallet companies to address such issues, reported by TOI in March 10 edition. Digital wallet players have also been asked to strengthen their technology infrastructure to prevent hacking of their platforms along with following adequate due diligence procedures and identification of users prior to on-boarding them onto their respective platforms.