Digit Insurance has introduced a groundbreaking insurance policy designed to support migrant construction workers in the Delhi NCR region during times of extreme air pollution. In partnership with K.M. Dastur Reinsurance Brokers, the new policy offers financial compensation when the daily Air Quality Index (AQI) in Delhi exceeds 400 on more than two occasions, a condition defined as a “strike.” A strike occurs if the AQI stays above 400 for at least three out of five consecutive days, with a minimum gap of 25 days between each strike.
This innovative policy is set to benefit 6,200 migrant workers whose livelihoods are affected by construction bans imposed during hazardous pollution levels. Under government and court guidelines, construction activities in Delhi are halted when air quality reaches dangerous levels, leading to loss of income for workers. The insurance will provide a claim payout of up to Rs 6,000, offering a much-needed safety net during environmental crises.
Nikhil Kamdar, the appointed actuary at Digit Insurance, explained that the company is proud to launch this parametric insurance solution, which offers a quick and transparent claim process. “Our policy is designed to address the wage loss experienced by vulnerable workers when construction is halted due to dangerous pollution levels. We believe in using innovative solutions to protect those who are most affected by environmental challenges,” he said.
Ayandev Saha, Senior Vice President at K.M. Dastur Reinsurance Brokers, added, “Migrant workers form the backbone of our cities, yet they often lack access to proper social safety nets. This policy will help provide financial support to construction workers during times of crisis. We are committed to working with key stakeholders to promote this inclusive solution across the real estate sector.”
The concept of parametric insurance differs from traditional insurance because it provides an automatic payout based on a specific event or threshold—in this case, dangerous pollution levels—without the need for lengthy loss assessments. In 2024, Digit Insurance also offered a similar policy for women laborers in Gujarat that covered losses due to excessive heat.
Founded in 2016 by Kamesh Goyal, Digit Insurance is a publicly listed company known for its innovative approach to insurance. Operating fully on cloud technology from its offices in Pune and Bengaluru, Digit Insurance has received multiple awards, including the General Insurance Company of the Year Award 2024, and has been recognized as one of India’s top companies to work for.