Farmers engaged in harvesting and sorting of onions in a farm at Bub Ka Hera Village in Alwar District of Rajasthan
| Photo Credit:
SHIV KUMAR PUSHPAKAR
Go Digit General Insurance Ltd (Digit Insurance) has said that it has disbursed a moisture index-based parametric insurance claim to farmers in Tonk district of Rajasthan as excess moisture breached pre-defined threshold limits.
A media statement said that 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 nearly 500 farmers, providing support to vulnerable farming households and helping them manage losses during climate disruptions, it said.
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.
‘Tools of confidence’
Quoting Adarsh Agarwal, Appointed Actuary, Digit Insurance, the statement said: “At Digit Insurance, our goal is to design data‑led insurance solutions that directly address the real‑world risks and expectations of our customers. 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 and 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,” Mohammad Faizan Huq said.
WBI‑driven moisture parametric insurance
The WBI, developed by Global Parametrics, a specialist in climate risk analytics and parametric insurance solution, is used as a proxy to measure excess moisture or drought conditions in a given location. The index measures the difference between rainfall and potential evapotranspiration levels, and the product is triggered using ERA5-Land climate data from European Centre for Medium-Range Weather Forecasts (ECMWF), an independent European Intergovernmental Organisation.
The WBI has been tailored to capture soil‑moisture stress conditions that directly affect rural smallholder farmers and their families. The use of parametric insurance means that the product triggers on objective, verifiable climate data, delivering transparent and timely payouts to policyholders.
A payout is triggered if the pre-defined water balance threshold is met or exceeded, leading to payouts in the range of 10-100 per cent of the total limit, depending on the severity of the excess moisture.
Published on January 29, 2026
