The insurer stated it has disbursed payouts to round 500 farmers throughout greater than 30 villages in Tonk district of Rajasthan after extra soil moisture breached pre-defined thresholds beneath the Water Steadiness Index (WBI). The coverage, which started in November 2025 and runs by means of April 2026, was designed to cowl soil moisture imbalance in the course of the rabi season, a threat that always results in waterlogging, root injury and crop rot.
The declare was largely pushed by injury to wheat crops in Tonk, regardless that the quilt prolonged to a number of rabi crops throughout Rajasthan and components of Uttar Pradesh. Digit had partnered with Howden Insurance coverage India to supply the WBI-based parametric answer to over 6,000 farmers throughout Tonk, Varanasi, Gorakhpur and Jaunpur, masking almost 2,200 acres.
“Parametric insurance coverage supplies fast liquidity utilizing goal and clear information,” stated Adarsh Agarwal, appointed actuary at Digit Insurance coverage. “This helps bridge the hole between local weather shock and restoration, particularly when volatility is rising.”
The corporate stated that such merchandise are gaining relevance as erratic rainfall, extended dry spells and excessive climate occasions make loss evaluation slower and extra contested beneath standard schemes.
Whereas parametric insurance coverage continues to be nascent in India and never a substitute for conventional crop insurance coverage, it may well develop as a complementary layer that may stabilise farm incomes, assist rural consumption and construct belief by means of quicker, undisputed payouts, the corporate stated.
Digit stated it can proceed to discover scaling parametric options throughout crops, districts and susceptible teams as local weather dangers intensify.
