Go Digit General Insurance Ltd (Digit Insurance) has announced the disbursement of a moisture index-based parametric insurance claim to farmers in Tonk district of Rajasthan, as excess moisture breached pre-defined threshold limits. According to reports from The Hindu BusinessLine, the claim has been paid to farmers in over 30 villages in Tonk, benefiting nearly 500 farmers. The moisture-based parametric cover was triggered based on the Water Balance Index (WBI) that breached the pre-defined water balance threshold for excess moisture. Excess moisture waterlogs the soil, increasing the risk of crop rot and affecting overall yield and farmers' income during the rabi season.
Digit Insurance had partnered with Howden Insurance India to offer WBI-based parametric solutions for excess moisture and drought to over 6,000 farmers across Rajasthan and Uttar Pradesh. As reported by The Hindu BusinessLine, the partnership covers close to 2,200 acres of farmland, with the WBI-based parametric insurance specifically designed to help farmers provide quick financial support during climate disruptions. The program aims to support vulnerable farming households and help them manage losses during adverse weather conditions.
Adarsh Agarwal, Appointed Actuary at Digit Insurance, stated that the company's goal is to design data-led insurance solutions that directly address real-world risks and expectations of customers. According to The Hindu BusinessLine, Agarwal emphasized that parametric insurance has the potential to safeguard vulnerable segments, with the WBI-based parametric insurance providing quick financial support when needed. Mohammad Faizan Huq, Head of Climate Risk and Agriculture at Howden India, noted that as climate volatility accelerates, India's agricultural sector deserves tools that deliver speed, transparency, and confidence.
The WBI, developed by Global Parametrics, a specialist in climate risk analytics and parametric insurance solutions, measures the difference between rainfall and potential evapotranspiration levels. As reported by The Hindu BusinessLine, the index uses ERA5-Land climate data from the European Centre for Medium-Range Weather Forecasts (ECMWF) as its data source. The WBI has been tailored to capture soil-moisture stress conditions that directly affect rural smallholder farmers and their families. The parametric insurance system triggers payouts in the range of 10-100 per cent of the total limit, depending on the severity of the excess moisture conditions.
According to the Economic Survey 2026, key priorities for the agriculture sector include strengthening access to assured water supply by strengthening irrigation systems that include reviving and rejuvenating water bodies and drip irrigation. The survey emphasized that climate change poses a significant challenge, with erratic weather patterns, rising temperatures, and extreme events affecting crop yields. Water scarcity was identified as a pressing and critical challenge in regions that are predominantly dependent on monsoon rainfall. The report noted that promoting climate-resilient agricultural practices, such as drip irrigation and sprinkler systems, as well as diversifying to high-yield, climate resilient/drought resistant crops, is critical for sustainability.
