Go Digit General Insurance Limited (Digit Insurance) has teamed up with K.M. Dastur Reinsurance Brokers (KMD) to introduce one of India’s first AQI-based parametric insurance policies for migrant workers in the Delhi NCR region. The policy aims to mitigate wage losses for construction workers during air pollution-induced construction bans.
The parametric insurance policy will trigger payouts of up to ₹6,000 for 6,200 migrant workers if the Air Quality Index (AQI) in Delhi exceeds 400 on more than two occasions. A “strike” occurs when the AQI surpasses the 400 threshold for at least three out of the preceding five days. There must also be a minimum gap of 25 days between each strike.
Nikhil Kamdar, Appointed Actuary at Digit Insurance, said, “We are proud to launch an innovative parametric insurance solution for vulnerable workers against wage loss caused by construction bans triggered by Delhi NCR’s hazardous levels of air pollution. Parametric insurance is a simple, efficient, and transparent way to address the financial vulnerabilities of workers caused by environmental challenges in the region.”
The policy targets migrant construction workers, who are often impacted by government and court orders that halt construction activities during periods of hazardous pollution. These workers will benefit from the direct financial support provided by the policy during these disruptions.
Ayandev Saha, Senior Vice President at K.M. Dastur Reinsurance Brokers, commented, “Migrant workers are the backbone of our cities, yet they often lack access to essential social safety nets. This parametric insurance policy will help provide construction workers with financial support during environmental crises, ensuring protection against the economic impact of pollution-related disruptions.”
Digit Insurance had previously introduced a similar parametric insurance policy in 2024, providing protection to women labourers in Gujarat against heat-related disruptions. Unlike traditional insurance, which requires the assessment of actual loss, parametric insurance offers immediate payouts triggered by the breach of predefined thresholds such as weather events or pollution levels.
