Latest news with #DigitInsurance
Time of India
2 days ago
- Business
- Time of India
How migrant labourers in Noida can get insurance payout of Rs 3000 if temperature rises
Extreme heat has led to a first-of-its-kind insurance payout, as Digit Insurance settled claims for migrant labourers in Noida after temperatures soared past 42 degrees Celsius. Unlike traditional policies, these payouts are triggered by weather thresholds rather than actual damages, offering fast financial relief without the need for detailed claim evaluations. Digit Insurance, in partnership with K M Dastur Reinsurance Brokers and Jan Sahas Foundation, is offering this heat-index based cover to workers across Delhi, Noida, Ghaziabad, Gurgaon, Faridabad, and Lucknow. "Digit's heatwave parametric insurance is a crucial step in providing migrant labourers with a much-needed safety net," said Adarsh Agarwal, chief actuary and product officer at Digit Insurance. The policy offers payouts of up to ₹3,000 when temperatures exceed specific thresholds for five consecutive days, with an additional payment if the heatwave continues for 10 days. These thresholds vary by city, ranging from 42°C to 43.7°C. The coverage is particularly significant for daily wage migrant workers who face high exposure to heat-related health risks like heatstroke. In 2024 alone, India reported 67,637 suspected heatstroke cases and 374 related deaths. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Indonesia: New Container Houses (Prices May Surprise You) Container House | Search Ads Search Now Undo The policy also includes a hospitalisation cash benefit of up to ₹5,000 for any accidental injury or illness during the coverage period, regardless of temperature levels. The premiums for the insured migrant workers are being covered by the Jan Sahas Foundation. This marks Digit Insurance's second collaboration with KMD and Jan Sahas; the trio had earlier launched a parametric insurance plan based on air quality index (AQI) for daily wage earners in Delhi-NCR. A similar initiative was introduced in May 2023 by ICICI Lombard in partnership with Swiss Re, targeting 50,000 women labourers linked to SEWA across 22 districts in Gujarat, Rajasthan, and Maharashtra. That policy provided automatic cash payouts when temperatures breached set thresholds, becoming the first of its kind in India to address heat-induced livelihood loss. Live Events
Mint
2 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.
Time of India
2 days ago
- Business
- Time of India
Heat insurance: Rs 3,000 for workers
MUMBAI: Intense heat has triggered a first-of-its-kind insurance payouts, with Digit Insurance settling claims for migrant labourers in Noida after temperatures crossed 42 degrees Celsius. The payouts, based on weather thresholds rather than actual losses, aim to provide quick financial relief without lengthy claim assessments. Digit Insurance, in partnership with K M Dastur Reinsurance Brokers and Jan Sahas Foundation, is offering this heat-index based cover to workers across Delhi, Noida, Ghaziabad, Gurgaon, Faridabad, and Lucknow. "Digit's heatwave parametric insurance is a crucial step in providing migrant labourers with a much-needed safety net," said Adarsh Agarwal, chief actuary and product officer at Digit Insurance. The policy pays up to Rs 3,000 when temperatures cross thresholds for five consecutive days, with an additional payout if the breach lasts 10 days. The threshold temperatures range from 42 to 43.7 degrees Celsius, varying by city. Many of the covered workers depend on daily wages and are exposed to heat-related risks such as heatstroke. In 2024, India recorded 67,637 suspected heatstroke cases and 374 deaths. The cover also includes a hospitalisation cash allowance of up to Rs 5,000 for any accidental bodily injury or illness during the coverage period, regardless of temperature. Jan Sahas Foundation is bearing the premium for the identified migrant workers. This is Digit Insurance's second collaboration with KMD and Jan Sahas. The three had earlier partnered to offer AQI-based parametric insurance to daily wage workers in Delhi-NCR. In May 2023, ICICI Lombard, in collaboration with Swiss Re, introduced a similar policy for 50,000 women labourers associated with SEWA across 22 districts in Gujarat, Rajasthan, and Maharashtra. That policy paid automatic cash compensation once temperatures exceeded set limits, making it the first Indian initiative specifically addressing heat-related livelihood loss. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
09-06-2025
- Business
- Time of India
Planning to port your health insurance plan? Here are some challenges you should be aware of
When Pune-based Diwan Varma's father had to be admitted to a hospital twice in quick succession, the insurer paid for the first hospitalisation and rejected the second claim, stating that it was for a pre-existing disease not disclosed earlier. While Varma was awarded the claim after escalating the issue to the insurance ombudsman in 2022, he was disillusioned enough to decide to shift to another health insurer. Being frustrated with long claim settlement delays or poor service by your existing health insurance company may not be the only reason you would want to dump your health plan and opt for a new one. You could be stuck with a policy bought over 10 years ago that has a room rent sublimit, co-payment and a very low cover size, or perhaps you'd rather have a plan that offers restoration, OPD and day-care benefits. 'Insurers have introduced many new plans that are not only more affordable, but are also packed with innovative features tailored to evolving consumer needs. Around 64% of customers who opt to port their health insurance policies cite the pursuit of better coverage at similar or lower premiums as their primary reason, especially given the rising medical inflation in India,' says Siddharth Singhal, Head of Health Insurance at Policybazaar. While it is a good idea to shift to a different plan for enhanced benefits, the transition may not always be the quick-fix solution you would expect. Here are some things to keep in mind before taking a decision to find a new health product and insurer. Should you port or migrate your plan? The first step is to know the difference between moving to a new product with the same insurer (migrating) and shifting to a different plan with a new insurer (porting). 'Deciding between migrating and porting depends entirely on your specific requirements, health needs and satisfaction with your current insurer,' says Pankaj Shahane, Head of Health Claims, Digit Insurance. 'Porting may be a better option when one is dissatisfied with the current insurer's claim service, network hospitals, policy features, or pricing structure,' says Bhaskar Nerurkar, Head, Health Administration Team, Bajaj Allianz General Insurance. One may want features such as wellness benefits, outpatient care, and access to newer or modern medical treatments. Should you port or migrate? Know the difference between the two to be able to take the right decision. 'Migration, on the other hand, is a convenient way to shift to another plan, especially when customers are satisfied with the current insurer and want to explore broader coverage,' says Priya Deshmukh, Head Health Products, Operation & Services, ICICI Lombard. This type of transition to a new plan can also be smoother compared to porting due to the maintenance of continuity with the same health insurer. Migrating also comes with a typically lower risk of underwriting rejections. Problems while porting Porting does offer several benefits because, as per Irdai guidelines, continuity benefits such as waiting periods for pre-existing diseases and specific treatments are transferable. Any no-claim or cumulative bonus can also be credited to your new plan. However, there are hurdles you need to be aware of not only to avoid rejection of your proposal, but also to ensure a smoother transition to the new insurer. Restrictive timeline: A big limitation with porting is that you can shift only during the annual renewal of your existing policy, not mid-term. The window for doing this is at least 45 days before renewal and not before 60 days. So if you have just renewed your policy and realise its shortcomings or face a bad customer service experience, you will have to wait another year before switching your insurer. Another big issue is that you cannot port if your policy has lapsed or does so during the process of porting. So make sure you start the process well before your policy's term ends because the evaluation, medical check-ups and underwriting may take a long time as it is similar to buying a fresh insurance plan. Pros & cons of porting Advantages You can get an insurer with better claim and customer service, and hospital network. You can get an upgraded plan with better features, fewer limits, and lower premium. You can get a plan suited to your medical condition and health needs. Waiting period for pre-existing diseases can be carried over. Accrued benefits and bonus can be moved to new insurer. Drawbacks Underwriting risk is much higher and so is the risk of rejection. You may have to pay a higher premium for better features. You may not be able to get a much higher coverage, especially if you have a claim history. You can move to a new insurer only at the time of renewal. Loyalty discounts and rewards cannot be carried over to new insurer. Underwriting: One of the biggest hurdles while porting is the underwriting process. 'Underwriting usually involves a thorough review of the consumer's claim and medical history, which can impact policy issuance. So, if the applicant has a history of a heart condition, the new insurer may impose exclusions or a waiting period for specific diseases, increase the premium, or even decline the porting request,' says Indraneel Chatterjee, Co-founder & COO, RenewBuy. This is true even if a minor new condition, say borderline high cholesterol, is discovered during the medical check-up, since it could indicate a potentially bigger health problem. 'Before deciding to port your health plan, it's important to assess whether the new insurer's offering aligns both with your current as well as future healthcare needs.' BHASKAR NERURKAR HEAD, HEALTH ADMINISTRATION TEAM, BAJAJ ALLIANZ GENERAL INSURANCE Higher cover limits: If you had bought a basic medical plan before Covid and have a low cover of, say, Rs.3 lakh, you may want to secure a bigger cover. While it is possible to enhance your cover while porting, it may not always be a good idea. Even as the new insurer is bound to offer you a plan that is at least the same size as your existing cover, increasing the sum insured may not make it cost-effective for you. It may be better to opt for a top-up or super top-up plans, which offer a much higher coverage at a lower cost. Secondly, the accrued benefits of waiting periods and no-claim bonus will be carried over only to the extent of your existing cover. 'If you had a sum insured of Rs.5 lakh in your old policy and choose to port to a new plan worth Rs.10 lakh, the benefits of the served waiting periods and accumulated no-claim bonus may apply only up to the Rs.5 lakh limit. For the additional Rs.5 lakh, new waiting periods or other terms of the new policy may apply as per the new insurer's guidelines,' explains Shahane. Adds Chaterjee: 'No-claim bonus may not always be transferred directly; some insurers may adjust it in the new sum insured, while some might not. If the insurer does not adjust it, the consumer might need to start accumulating it from scratch.' Loyalty rewards, other features: While benefits like waiting periods for pre-existing diseases can be transferred during porting, any loyalty discounts offered by the insurer or features specific to your policy will not be shifted. So, if you bought the previous plan with a domiciliary hospitalisation benefit because of your specific medical condition, this feature will not be carried over to the new plan, and the policy you pick may or may not offer it as an inbuilt option. Check before porting Before switching insurers, make sure the new plan bridges the medical gaps and addresses the shortcomings in your existing policy. 'Evaluate key factors, such as the insurer's claim settlement ratio, premium affordability, customer service quality and co-payment or sub-limit clauses, and review exclusions or pending waiting periods in your current policy,' says Deshmukh. Specific features: While focusing on an affordable premium and crucial features, make sure the new plan has features specific to your ongoing medical condition or future requirements, say, maternity benefits if you are planning to start a family. 'It's important to assess whether the new insurer's offering aligns with both current and future healthcare needs,' agrees Nerurkar. OPD & day-care benefits: If you have a lifestyle disease or a family history of lifestyle or mental health illnesses, make sure you opt for the OPD benefit since you will use it more than the in-patient hospitalisation. This also covers dental treatments, teleconsultation, diagnostics and physical consultations. Besides, advanced technology means several treatments can be taken as day-care procedures, such as dialysis, chemotherapy, eye surgery, etc., instead of hospitalisation. 'Underwriting usually involves a review of the consumer's claim and medical history.... and the new insurer can impose exclusions, increase the premium or even decline the porting request." INDRANEEL CHATTERJEE CO-FOUNDER & COO,RENEWBUY Restore benefit: This is another feature that serves well due to the rising healthcare and surgery costs. It allows you to fully or partically recharge the sum insured if you exhaust your limit in a given year. Claim settlement ratio: Check whether the new insurer's claim settlement ratio is the same or better than that of your existing insurer as it reflects reliability and efficiency in settling claims. Portability proposal can be rejected due to… Underwriting risk Since porting is like buying a new policy, it is subject to fresh underwriting and if your health condition, claim history, family's medical history or your age poses a significantly high risk for the new insurer, he has the right to refuse your proposal. Non-disclosure If you accidentally or deliberately fail to give information about a pre-existing illness or disease while filling the proposal form, and it shows up during the medical check-up by the new insurer, your proposal is likely to be rejected. Policy differences Portability is allowed only between similar policies. If you want to move from an indemnity plan to a critical illness policy, or from a group plan to an individual plan, the insurer may decline your request. Also, if you want high coverage compared to your existing plan, it can be denied as being an indicator of an impending health issue. Previous cancellation If there is a history of your previous policy being marked for cancellation or being cancelled for non-disclosure or attempt to misguide, the new insurer can decline your portability request. Procedural issues You are supposed to send in porting request at least 45 days before renewal. If there is a delay or if you submit documents with errors or incorrect information, the new insurer can deny your request. Policy lapse If your policy has lapsed or does so during the process of porting, your new insurer can reject the proposal. It can also be denied if your previous policy shows any renewal gaps in the past.
News18
03-06-2025
- News18
Flight Delays, Floods, And Cancellations: What Travel Insurance Really Covers
Last Updated: Experts stress the need for comprehensive travel insurance in India due to rising climate uncertainty. Discover what it covers and why it's essential. Travel Insurance In India: When planning trips to domestic or international destinations, the idea of purchasing travel insurance rarely crosses the minds of many Indian travelers. They often consider it an unaffordable luxury due to budget constraints. However, unpredictable weather and increasing climate uncertainty are starting to change this perspective. Experts say the need for comprehensive coverage is growing, especially in the face of rising climate uncertainty. What Does Travel Insurance Cover? Travel insurance is traditionally known for covering medical emergencies, accidents, and loss of baggage or documents. However, its importance during weather-related disruptions is being increasingly considered. 'Flights may be cancelled for various reasons, including inclement weather, but travel insurance doesn't cover weather itself—it covers the consequences like trip cancellation or delay," explains R Balasundaram, Secretary General of the Insurance Brokers Association of India (IBAI). He also clarifies that cancellations by tour operators in package trips are not recoverable under most policies. Extreme Weather and Claims According to Vivek Chaturvedi, CMO & Head of Direct Sales at Digit Insurance, 'Flight delays and trip cancellations are the most common claims during extreme weather events like floods or heavy rain. Such incidents directly disrupt travel plans and trigger insurance claims if delays exceed the minimum time specified." He adds that travel insurance can also support in rare but severe cases like accidents at airports or natural disasters. Post-pandemic and amid climate disruption, travelers are opting for more robust insurance. 'Many now prefer higher sum-insured policies—ranging from $250,000 to $500,000—to cover medical costs, fraud, or last-minute cancellations," Chaturvedi says. First Published: June 03, 2025, 11:09 IST
