Digit Insurance Pays Claims Under Parametric Cover
FinTech BizNews Service
Mumbai, June 18, 2025: Go Digit General Insurance Limited (Digit Insurance), one of India’s leading digital full stack insurance company, announced it has settled claims for migrant labourers in Noida under parametric insurance as temperature in the city breached the threshold of 42°C, triggering the first payout. The Company has partnered with K.M. Dastur Reinsurance Brokers (KMD) and Jan Sahas Foundation to offer heat index-based parametric insurance to migrant labourers across six cities.
The cover aims to provide crucial financial relief to workers impacted by extreme heat events. The coverage is being offered to migrant labourers across Delhi, Noida, Ghaziabad, Gurgaon, Faridabad, and Lucknow. Many migrant labourers rely on their daily wages and work under extreme heat conditions during peak summers exposing them to severe heatstroke, which can also be life threatening. In 2024, India reported 67,637 cases of suspected heatstroke and 374 deaths.
The threshold temperature for each city has been set differently and is in the range of 42-43.70°C. The claim payouts are structured into two tiers. The first payout automatically kicks in if the temperature of a specific city crosses the threshold for five consecutive days. If the temperature exceeds the threshold for ten consecutive days, the exit strike will kick in, leading to an additional payout. Under the Digit Parametric Insurance policy, the insured migrant labourers will be paid up to Rs 3,000, allowing them to protect their health and afford daily necessities.
Commenting about the offering, Adarsh Agarwal, Chief Actuary and Product Officer, Digit Insurance, said, “Digit's heatwave parametric insurance is a crucial step in providing migrant labourers with a much-needed safety net, ensuring their financial resilience amidst extreme heat. The timely payout in Noida reaffirms parametric insurance has the potential to address many environmental challenges. We are committed to developing innovative parametric solutions and collaborating with different stakeholders to create meaningful products for various sections.”
The parametric cover also comes along with a hospitalization cash allowance of up to Rs 5,000 in case of any accidental bodily injury or illness is also being offered during the period. The allowance is applicable even if no temperature breach has occurred and applies to any type of hospitalization, ensuring additional support to workers during extreme weather conditions.
Speaking about the product, Ayandev Saha, Executive Vice President, K.M. Dastur Reinsurance Brokers, said, “We feel especially positive about this heat stress cover since it brings complementarity between the benefits of traditional and parametric insurance. So, while there is parametric insurance to provide transparent, timely support when the mercury consistently crosses a defined threshold, the migrant labourers also have a defined benefit hospital cash cover for their heat-related illnesses running parallelly without any triggers. This unique synergy between products is a game-changer in addressing climate-related risks. Together with Digit Insurance and partners like Jan Sahas, KMD aims to scale such integrated solutions to better protect vulnerable communities across India.”
The premium for this cover, on behalf of the identified migrant labourers, is being borne by Jan Sahas Foundation, protecting migrant labourers from extreme heat conditions. Jan Sahas Foundation remains committed to collaborating with partners such as Digit Insurance, KMD, funders and other stakeholders to ensure solutions like parametric insurance for migrant workers become more scalable and sustainable. Speaking on the initiative, Rajpal Panwar, Director, Jan Sahas Foundation, said, “Jan Sahas believes parametric insurance has significant potential to strengthen the financial resilience of informal workers against income and health shocks caused by climate-related events. We are committed to engaging with insurers, employers and other stakeholders to ensure millions of informal workers have access to such products.”
This is Digit Insurance’s second partnership with KMD and Jan Sahas. The company previously had partnered with them to offer AQI-based parametric insurance to daily wage labourers of Delhi-NCR. Parametric insurance offers quick claim payouts based on specific events or metrics (e.g., weather, pollution, natural disasters). Unlike traditional insurance, which requires loss assessment, parametric insurance triggers immediate payouts when predefined thresholds are breached.
