Parametric Insurance in India: Automatic Payouts for Weather Risk
Why in the news
With extreme weather rising, parametric insurance is gaining ground in India. It is still small, but insurers expect faster growth.
What it is
- Pays automatically when a preset parameter is met: temperature, rainfall, wind speed or seismic magnitude.
- Skips claim filing and damage assessment, so payment is swift and transparent.
| Feature | Detail |
|---|---|
| Events | Heatwaves, heavy rain, earthquakes, cyclones, floods |
| Daily payout | ₹500 to ₹2,000 |
| Hospitalisation | Up to ₹5,000 |
| Data used | IMD readings |
Exam angle
- Payout on a trigger, not on assessed loss.