My friend bought one of these insurance schemes for 4000. One day the screen was broken. She claimed this scheme and they installed a scratched and used screen after a month of depositing the phone.
With the kind of experiences I've heard, I'd say that use the phone with a tempered glass and a case. If it breaks, claim warranty or get it repaired from outside. My brother just got his Redmi note 3 screen replaced for just 1500 Rs from Gaffar market.