Go Digit General Insurance Limited (Digit Insurance) has announced the settlement of claims under its parametric insurance cover for migrant labourers in Noida. The payout was triggered after the city’s temperature breached the threshold of 42°C for five consecutive days. The insurance, developed in partnership with K.M. Dastur Reinsurance Brokers (KMD) and Jan Sahas Foundation, is being offered across Delhi, Noida, Ghaziabad, Gurgaon, Faridabad, and Lucknow.
The cover is designed to offer financial relief to migrant workers affected by extreme heat. In 2024, India recorded 67,637 suspected heatstroke cases and 374 related deaths. The policy provides payouts up to ₹3,000 when temperature thresholds are exceeded and an additional amount if the extreme heat persists for ten days. A separate hospitalisation cash benefit of up to ₹5,000 is also included, available even without a temperature trigger.
“Digit’s heatwave parametric insurance is a crucial step in providing migrant labourers with a much-needed safety net,” said Adarsh Agarwal, Chief Actuary and Product Officer, Digit Insurance.
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.”
Jan Sahas Foundation is funding the premiums and continues to support scaling such initiatives. Rajpal Panwar, Director, Jan Sahas Foundation, noted, “Jan Sahas believes parametric insurance has significant potential to strengthen the financial resilience of informal workers.”
This is Digit Insurance’s second collaboration with KMD and Jan Sahas, following an earlier AQI-based insurance pilot. Parametric insurance provides swift payouts based on predefined environmental triggers, differing from traditional models that require detailed claims assessment.
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