Paytm has said in a blog post that the balance in your Paytm wallet is now insured. Every Paytm user gets this insurance free-of-cost with immediate effect. The only caveat is that the insurance covers only an amount of ₹20,000. Not more than that.
The insurance is applicable if your mobile phone gets lost or stolen. The insurance is also applicable in case you’re a victim of fraud. In both cases, you have to register a report with Paytm through their customer care number (+919643979797) or their website. They will review the report and refund the lost amount to your Paytm account. Your Paytm account will also get blocked to avoid further misuse. In case your mobile phone is lost, you will also need to file an FIR and send Paytm a copy of the same.
Knowing the jugaadu nature of Indians, Paytm has limited insurance claims to only one in 12 months per user. Hence, don’t think of turning this into a money-making activity.