The total policy sum insured for excess moisture and drought parametric coverage was Rs 1.5 crore for around 2,200 acres of land spread across four districts: Tonk in Rajasthan and Gorakhpur, Jaunpur and Varanasi in Uttar Pradesh.
Bengaluru: Go Digit General Insurance (Digit Insurance) said it has disbursed one of India’s first moisture index-based parametric insurance claim to farmers in Tonk district of Rajasthan as excess moisture breached pre-defined threshold limits.
The claim has been paid to farmers in over 30 villages in Tonk as the moisture-based parametric cover based on Water Balance Index (WBI) breached the pre-defined water balance threshold for excess moisture. Excess moisture waterlogs the soil, increasing the risk of crop rot, affecting overall yield and farmers’ income in rabi season.
The claim will benefit ~500 farmers, providing support to vulnerable farming households and helping them manage losses during climate disruptions.
Digit Insurance had partnered with Howden Insurance India to offer WBI-based parametric solution for excess moisture and drought to over 6,000 farmers across Rajasthan (Tonk) and Uttar Pradesh (Varanasi, Gorakhpur and Jaunpur), covering close to 2,200 acres of farmland.
The total policy sum insured for excess moisture and drought parametric coverage was Rs 1.5 crore for around 2,200 acres of land spread across four districts: Tonk in Rajasthan and Gorakhpur, Jaunpur and Varanasi in Uttar Pradesh.
The policy commenced from November 2025 and expires in April 2026.
This is Digit Insurance’s third parametric payout. Earlier, the company delivered rapid heat index based payouts to migrant workers in Noida and Delhi NCR and women farmers in Gujarat.
Climate-induced challenges have intensified in recent years, with farmers facing prolonged dry spells, sudden excess rainfall, and widespread soil moisture imbalance, leading to crop failures, root damage, and significant financial losses. The moisture index-based parametric insurance aims to provide objective, transparent and quick payouts, helping farming households better withstand weather uncertainties.
Adarsh Agarwal, Appointed Actuary, Digit Insurance, said, ” India is prone to various climate-related risks and parametric insurance is a unique concept that has the potential to safeguard various vulnerable segments. Water Balance Index-based parametric insurance is one such solution to help farmers provide quick financial support in time of need. Our aim will always be to stay ahead of the curve and work with all stakeholders to develop scientifically driven and innovative parametric triggers to raise the standard of protection across the country.”
Mohammad Faizan Huq, Head,Climate Risk & Agriculture, Howden India, said, “As climate volatility accelerates, India’s agricultural sector deserves tools that deliver speed, transparency, and confidence. We are proud to support programmes that use robust indices to provide fast liquidity when adverse weather strikes. Parametric insurance is still evolving in India but has immense potential to transform how insurance is delivered to vulnerable segments. Collaborative partnerships with innovative insurance companies like Digit will ensure that these solutions benefit wider communities in the future.”