Go Digit launches India’s first AQI-based parametric insurance for Delhi-NCR construction workers

Go Digit launches India’s first AQI-based parametric insurance for Delhi-NCR construction workers

Go Digit General Insurance Limited (Digit Insurance) has partnered with K.M. Dastur Reinsurance Brokers (KMD) to introduce one of India’s first Air Quality Index (AQI)-based parametric insurance policies.

According to a press release, the policy aims to safeguard 6,200 daily wage construction workers in the Delhi NCR region against income loss due to construction bans triggered by severe air pollution.

With rising pollution levels in Delhi NCR leading to frequent government-imposed construction bans, thousands of migrant workers face disruptions to their livelihoods.

The newly launched Digit Parametric Insurance Policy will provide financial support of up to Rs 6,000 per worker if the daily AQI exceeds 400 beyond two strikes, the release said.

A strike is defined as occurring when the AQI crosses 400 for at least three out of the previous five days.

The claim payout will be automatically triggered once this threshold is breached twice, with a minimum gap of 25 days between each strike, the release said.

Commenting on the initiative, Nikhil Kamdar, Appointed Actuary, Digit Insurance, said, “We are proud to launch this innovative parametric insurance solution that addresses the financial vulnerabilities of construction workers affected by Delhi NCR’s hazardous air pollution. Parametric insurance offers a simple, efficient, and transparent way to ensure swift financial relief in times of crisis.”

Unlike traditional insurance, where claims require a detailed loss assessment, parametric insurance ensures instant payouts based on predefined triggers, in this case, pollution levels monitored by independent sources.