Shamini 
(C): Twitter
What is parametric heatwave insurance?
Digit Insurance, along with K M Dastur (KMD) and Jan Sahas Foundation, launched India’s first heat index parametric cover for daily wage labourers in Delhi, Noida, Ghaziabad, Gurgaon, Faridabad and Lucknow. The coverage is triggered by weather thresholds, offering more timely payout relief in extreme heat situations as opposed to actual losses.
How much do workers receive?
- A payment of an automatic amount of up to INR 3,000 will be made if the temperature has been above the threshold (42 – 43.7 degrees Celsius) for five days in a row.
- A second payment occurs if the heat breach continues for 10 days.
What extra benefits are included?
In addition to the heat-based payouts, the policy pays a cash allowance for hospitalisation for an average of INR 5000 for any accidental injury or illness regardless of the temperature trigger.
Who funds the premiums?
Jan Sahas Foundation pays the premiums for some migrant workers, giving them easier protection (no cost barrier).
Why is this a breakthrough for migrant labourers?
In 2024, with more than 67,000 suspected cases of heatstroke and 374 deaths, daily wage labourers are facing life-threatening heat exposure. Because traditional insurance typically does not work well due to the delays from long claim processing, parametric models can confirm the necessity for speed and transparent payments.
Digit’s heatwave policy is in line with a previous AQI-based parametric insurance for construction workers in Delhi-NCR. In May 2023, ICICI Lombard and Swiss Re launched a similar model for SEWA-affiliated female workers in Gujarat, Rajasthan and Maharashtra.
