Latest news with #ClimateSafe
Mint
3 days ago
- Business
- Mint
Digit Insurance disburses parametric claims to Noida migrant workers as heatwave hits 42°C
Go Digit General Insurance (Digit Insurance), a leading digital full stack insurance company, has announced that it has settled claims for migrant labourers in Noida under parametric insurance as temperature in the city breached the threshold of 42°C (Celsius), triggering the first pay out. The threshold temperature for each city has been set differently and is in the range of 42°C-43.7°C. The claim payouts are structured into two tiers, the company said. The first payout automatically kicks in if the temperature of a specific city crosses the threshold for five consecutive days, it said. 'If the temperature exceeds the threshold for ten consecutive days, the exit strike will kick in, leading to an additional payout,' Go Digit said. Under the 'Digit Parametric Insurance' policy, the insured migrant labourers will be paid up to ₹ 3000, allowing them to protect their health and afford daily necessities. The parametric cover also comes along with a hospitalisation cash allowance of up to ₹ 5000 in case of any accidental bodily injury or illness. The allowance is applicable even if no temperature breach has occurred and applies to any type of hospitalisation, ensuring additional support to workers during extreme weather conditions. Bajaj Allianz General Insurance recently launched 'Climate Safe', which is also a parametric insurance policy wherein pay outs are triggered when certain specified parameters are met. It covers increased living costs due to extreme weather. ICICI Lombard, in collaboration with Swiss Re, launched the first parametric-based weather insurance in the country, covering 'High Heat' events to women labourers associated with 'Self Employed Women's Association (SEWA)' in Gujarat, Rajasthan and Maharashtra in May 2023. Go Digit Insurance has partnered with K.M. Dastur Reinsurance Brokers (KMD) and Jan Sahas Foundation to offer heat index-based parametric insurance to migrant labourers across Delhi, Noida, Ghaziabad, Gurgaon, Faridabad, and Lucknow. 'Many migrant labourers rely on their daily wages and work under extreme heat conditions during peak summers exposing them to severe heatstroke, which can also be life threatening. In 2024, India reported 67637 cases of suspected heatstroke and 374 deaths,' Go Digit Insurance said. Unlike traditional insurance, which requires loss assessment, parametric insurance triggers immediate pay outs when predefined thresholds are breached. The pay out is triggered by a specified parameter that is described as a strike point. The strike point is defined as the moment when the insured weather parameter (measured in milli meters of rainfall or degrees of temperature) exceeds the predefined threshold specified in the policy. If this strike point is reached within the policy period, a proportionate percentage of the sum insured is paid to the policyholder. The policy also has something called the exit point that is triggered when the thresholds are breached for several consecutive days. A higher pay out is made when the exit point is reached. The strike and exit points are unique to each policy, depending on the selected risk, risk location, and risk period. 'Digit's heatwave parametric insurance is a crucial step in providing migrant labourers with a much-needed safety net, ensuring their financial resilience amidst extreme heat,' said Adarsh Agarwal, chief actuary and product officer, Digit Insurance. 'The timely pay out in Noida reaffirms parametric insurance has the potential to address many environmental challenges,' he stated. 'So, while there is parametric insurance to provide transparent, timely support when the mercury consistently crosses a defined threshold, the migrant labourers also have a defined benefit hospital cash cover for their heat-related illnesses running parallelly without any triggers,' said Ayandev Saha, Executive Vice President, K.M. Dastur Reinsurance Brokers. 'We feel especially positive about this heat stress cover since it brings complementarity between the benefits of traditional and parametric insurance,' he said. The premium for this cover, on behalf of the identified migrant labourers, is being borne by Jan Sahas Foundation. 'Parametric insurance has significant potential to strengthen the financial resilience of informal workers against income and health shocks caused by climate-related events,' said Rajpal Panwar, Director, Jan Sahas Foundation. Allirajan M is a journalist with over two decades of experience. He has worked with several leading media organisations in the country and has been writing on mutual funds for nearly 16 years.
Mint
07-05-2025
- Business
- Mint
Now get insurance coverage for weather-related damages – Here's how
With extreme weather events that include severe cyclonic storms and heatwaves becoming normal now, climate change is real. Climate change can hit people in multiple ways including loss of livelihood and income loss that may last for a few days, weeks or even months. To mitigate the losses arising from climate change, Bajaj Allianz General Insurance has come up with a 'ClimateSafe' insurance policy. Here is a quick guide on its features and benefits: ClimateSafe, which is a parametric insurance policy wherein payouts are triggered when certain specified parameters are met, covers increased living costs due to higher electricity use, unexpected commuting expenses, reduced sales during extreme weather, supply chain delays from flooding, leaks from prolonged rainfall, accidents caused by excessive rain, loss of income for daily wage workers due to severe weather, damage to household items from floods and heat waves, and event cancellations due to adverse weather. Customers can buy Bajaj's climate risk insurance multiple times during the year, with automatic claim settlements happening within seven days without any intimation required from the customer and minimal documentation requirements. 'This product is designed to provide financial protection to those who are significantly vulnerable to the impact of climate change,' Bajaj Allianz said. ClimateSafe is suitable for individuals who rely on daily earnings, which makes them highly vulnerable to climate risks. It is specifically tailored to meet the needs of retail customers, office goers, auto/taxi drivers, retail shop owners, delivery agents, home service professionals, gig workers, home residents, and event attendees facing climate-related income loss or increased expenses due to climate-related risks, including extreme heat, cold waves, and excessive rainfall. 'Customers can self-select their risk location, risk period (from 1 day to 30 days), weather risk (excessive rainfall, low temperature, high temperature), and sum insured,' Bajaj Allianz said. 'ClimateSafe Insurance offers quick financial relief, as automatic payouts based on predefined triggers provide quick financial support, helping manage immediate needs,' said Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance. The insurer analyses historical data, climate models, and various risk factors to determine the likelihood and potential impact of extreme weather events in specific regions. Based on the assessed risk, the insurer calculates premiums that policyholders must pay to obtain coverage. When a covered extreme weather event occurs, policyholders can file claims to receive payouts from the insurance company. ClimateSafe uses historical weather data to calculate the threshold or benchmark temperate/rainfall for specific location and period. Real-time climate data is used to determine payouts. When predefined weather conditions are met, the policyholder receives payout without the need for a lengthy claims process. Currently only excess rainfall, high temperature, and low temperature is covered under ClimateSafe Insurance. Premiums are based on real-time climate data, your specific location, and personal risk profile. 'This dynamic pricing ensures that you pay a fair premium based on your actual risk,' the company said. The payout under this insurance policy is triggered by a specified parameter that is described as a strike point. The strike point is defined as the moment when the insured weather parameter (measured in millimeters of rainfall or degrees of temperature) exceeds the predefined threshold specified in the policy. If this strike point is reached within the policy period, a proportionate percentage of the sum insured is paid to the policyholder. For policies covering periods longer than one day, multiple strike points may occur, and if they do, the claim is paid accordingly. The policy also has something called the exit point when the full sum insured is paid. The exit point is the moment when predefined weather parameters (measured in millimeters of rainfall or degrees of temperature) exceed the maximum threshold defined in the policy. If this exit point is reached within the policy period, the full sum insured is paid to the policyholder. The strike and exit points are unique to each policy, depending on the selected risk, risk location, and risk period. These conditions are displayed on the quotation screen when you purchase the policy and are also detailed in your policy document. Daily weather data is gathered from trusted sources such as the Indian Meteorological Department (IMD) (Gridded) for rainfall and ERA5 (Gridded), the fifth generation European Centre for Medium-Range Weather Forecasts (ECMWF) that provides global climate and weather data, for temperature. This information is utilised to establish triggers based on historical data and to verify if the predefined weather conditions are met using current data for policy period. Climate insurance is great in these uncertain times. But you should buy it only if you are vulnerable to the risks. For instance, if you live in a place where extreme weather events haven't occurred, then you may not need the insurance. But for those who are living in locations where such events happen with alarming frequency, climate insurance can be a good hedge against unforeseen weather conditions. Allirajan M is a journalist with over two decades of experience. He has worked with several leading media organisations in the country and has been writing on mutual funds for nearly 16 years.
The Hindu
28-04-2025
- Business
- The Hindu
Bajaj Allianz General Insurance launches parametric insurance product
Bajaj Allianz General Insurance Company on Monday launched a parametric insurance product 'ClimateSafe'. The product is intended to provide financial protection to those significantly vulnerable to the impact of climate change. It will offer quick financial relief based on predefined weather triggers such as extreme high temperatures, cold waves or excessive rainfall, the company said on Monday. A first-of-its-kind climate risk protection policy in India, the product is a direct response to the urgent and growing need to safeguard livelihoods from the increasing unpredictability caused by climate change, MD and CEO Tapan Singhel said in a release. The insurance cover is tailored to meet the needs of retail customers, office goers, auto/taxi drivers, retail shop owners, delivery agents, home service professionals, gig workers, home residents and event attendees facing climate-related income loss or increased expenses due to climate-related risks, including extreme heat, cold waves, and excessive rainfall, Bajaj Allianz General Insurance said. According to the company, customers can buy the cover multiple times during the year with automatic claim settlements happening within seven days without any intimation required from the customer and minimal documentation requirements. It will have dynamic pricing with predefined triggers and tailored premiums based on real-time climate data. Customers can self-select their risk location, risk period (from 1-30 days), weather risk (excessive rainfall, low temperature, high temperature) and sum insured.
Time of India
26-04-2025
- Business
- Time of India
Too hot to work? Insurance can now compensate for income loss
Mumbai: As climate risks grow more immediate, insurers are seeking new ways to offer protection. The latest is a cover that pays out pre-agreed amounts to individual policyholders when specific weather thresholds—such as temperatures above 42°C or excessive rainfall—are reached. Tired of too many ads? go ad free now Bajaj Allianz General Insurance has launched "ClimateSafe," a parametric insurance product aimed at individuals vulnerable to the financial effects of extreme weather. ClimateSafe represents a new offering in India's insurance sector. Claims under ClimateSafe are settled automatically without the need for traditional documentation, with payouts disbursed within seven days. For example, a daily wage worker selecting Rs 500 per day coverage over 15 days would receive Rs 500 for each day that the temperature exceeds 42°C, up to a maximum of Rs 7,500. The objective of the cover is to compensate for income loss when the worker is not able to work due to extreme weather. The covers are termed parametric as the payout is linked to the occurrence of a predefined event measured by set parameters, rather than assessed by actual loss. Pricing is dynamic, reflecting real-time climate data and personal risk profiles and vary widely depending on the liklihood of the weather threshold being breached. Designed for daily wage workers, drivers, shop owners, and event attendees, the product provides coverage against income disruption or additional expenses resulting from extreme heat, cold waves, or heavy rain. Customers can choose their location, risk period (between one and 30 days), peril type, and sum insured. "Climate change is no longer a distant threat. It is a reality that affects our daily lives in visible and often disruptive ways. Tired of too many ads? go ad free now From flight cancellations due to extreme weather to delays in logistics, supply chains and daily commutes, the financial and emotional toll of climate-related events is steadily increasing,' said Tapan Singhel, managing director and chief executive, Bajaj Allianz General Insurance. The product relies on historical and real-time weather data from sources such as the Indian Meteorological Department and ERA5. Customers can purchase policies online, via mobile app, or through the company's distribution network. Proponents of parametric insurance argue that it offers a simpler, faster alternative to traditional claims-based insurance. Whether such products will gain broad adoption in India, where insurance penetration remains low and weather volatility is rising, remains to be seen.
