Heat Insurance for Workers: Digit Launches ₹3,000 Parametric Payout Scheme for Migrant Labourers

In a first-of-its-kind initiative, Digit Insurance has rolled out a temperature-based insurance policy offering ₹3,000 payouts to migrant labourers exposed to extreme heat conditions. The policy activates when temperatures exceed 42°C for five consecutive days, with claims processed without requiring proof of loss or medical documentation marking a significant shift toward parametric insurance in India.

The initiative covers workers in high-heat zones like Delhi, Noida, Ghaziabad, Gurgaon, and Faridabad, and is aimed at mitigating heatwave-linked livelihood risks for vulnerable daily-wage earners. Additional benefits include hospitalisation and accidental coverage of up to ₹5,000. Adarsh Agarwal, Chief Actuary at Digit Insurance, described the policy as a “much-needed safety net” for India’s migrant workforce.

The product has been developed in partnership with NGOs like Jan Sahas and IPE Global Foundation, reflecting a collaborative push towards climate-resilient social protection for informal workers. This innovative step signals growing recognition of climate risk in insurance design and offers a replicable model for other climate-sensitive sectors in India.