Go Digit General Insurance Limited (Digit Insurance) has launched a pioneering air quality index (AQI)-based insurance policy designed to support migrant construction workers in Delhi NCR. This initiative, developed in partnership with K.M. Dastur Reinsurance Brokers (KMD), marks one of the first of its kind in India.
The policy, which targets up to 6,200 workers, will provide compensation of up to ₹6,000 for those affected by construction work bans due to severe air pollution.
Under the new scheme, claims will be automatically triggered if Delhi’s AQI exceeds the hazardous threshold of 400 on more than two occasions. Specifically, a “strike” is defined as three days of AQI levels above 400 within any five-day period, with at least a 25-day gap between strikes.
Government regulations and court rulings often mandate halting construction activities during periods of hazardous pollution, leading to significant wage losses for workers.
Nikhil Kamdar, the appointed actuary at Digit Insurance, explained that the policy aims to provide a transparent and efficient way to compensate workers for the income lost due to pollution-related work stoppages.
This launch follows Digit Insurance’s introduction of a heat-related parametric insurance policy in Gujarat for women laborers earlier in 2024, continuing the company’s efforts to provide innovative insurance solutions for vulnerable worker communities.
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