Parametric Insurance
Smart, data-driven insurance solutions for climate and catastrophe risks in India
Parametric Insurance is an innovative risk management solution designed to provide fast and transparent financial protection against climate and natural disaster risks. Instead of waiting for physical loss assessments, payouts are triggered automatically based on predefined data points such as rainfall levels, temperature thresholds, wind speed, or seismic activity. This approach ensures quicker recovery and predictable outcomes for businesses, institutions, and communities exposed to climate volatility.
Key Benefits
- Instant Payouts: Automated claim settlement once predefined triggers are breached
- Objective & Transparent: Payouts based on trusted third-party data sources
- Objective & Transparent: Payouts based on trusted third-party data sources
- Highly Scalable: Ideal for large populations, portfolios, and geographic regions
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What is Parametric Insurance?
Parametric Insurance is a modern insurance solution where payouts are linked to predefined event triggers instead of physical loss assessments. It relies on measurable data such as rainfall levels, temperature extremes, wind speed, or seismic activity. When the agreed threshold is breached, the payout is automatically activated. This removes the need for surveys, paperwork, and lengthy claim verification. As a result, it provides fast, transparent financial support for climate-sensitive sectors.
Why do you need Parametric Insurance?
Climate Risk Protection
Safeguards businesses & communities from financial shocks caused by floods, droughts, heatwaves, & cyclones.
Faster Financial Relief
Ensures immediate access to funds when predefined weather or catastrophe triggers are met.
Predictable Outcomes
Eliminates uncertainty by clearly defining payout conditions before the policy starts.
Portfolio-Level Coverage
Perfect for covering large loan books, cooperatives, supply chains, and infrastructure assets.
Why choose Insurance Manager to protect your business?
Technology-Driven Solutions
We leverage real-time data, analytics, and automated triggers to deliver reliable parametric covers.
Comprehensive Protection for Your Workforce
Ensure employee well-being with complete health insurance coverage.
Cost-Effective Group Insurance Plans
Affordable plans with benefits like maternity, critical illness, and dependent coverage.
India-Specific Risk Models
Our products are tailored to India’s diverse climate zones and sector-specific risks.
Peace of Mind for Employers and Employees
Reduce financial stress with cashless claims and reimbursement options.
Trusted Data Partnerships
We integrate data from IMD, global climate models, and independent agencies.
Boost Employee Productivity and Retention
Build loyalty and motivation by easing economic and mental burdens.
End-to-End Support
From policy structuring to payout execution, we manage the entire insurance lifecycle.
What does Parametric Insurance cover and exclude?
Plan Coverage
Rainfall Deficit or Excess
Provides payout when rainfall levels fall below or exceed predefined thresholds.
Extreme Temperature Events
Covers heatwaves or cold spells impacting productivity or operations.
Cyclone & Wind Speed Triggers
Compensation based on wind speed intensity recorded during cyclonic events.
Flood Index-Based Coverage
Payouts triggered by river levels or flood severity indices.
Earthquake Magnitude Events
Coverage activated when seismic activity crosses agreed magnitude levels.
Solar Irradiation Variance
Protects renewable energy output against prolonged low sunlight periods.
Drought Index Protection
Supports agriculture and rural finance portfolios during drought conditions.
Business Interruption Triggers
Provides liquidity for operational disruptions caused by climatic events.
- In-patient treatment 24 hours a day
- Pre-existing disease
- Pre and Post hospitalization
- Domiciliary hospitalization expenses
- Reimbursement of cost of health check-up
- All day care procedure
- Family floater to covers member’s immediate family such as a spouse, dependent children, dependent parents, etc.
- Maternity benefits
- Dental treatment
- Cost of spectacles, contact lenses
- Waiver of waiting period
- Waiver of first-year exclusions
- Reimbursement of ambulance costs
- Baby day one care
- Vaccination benefits
- Increased room rent limits
- Corporate buffer
- Out-patient treatment (OPD Card)
- Root canal surgery
- In-hospitalization expenses due to sickness or accidents
- Room and boarding expenses as provided by the hospital/nursing home.
- Nursing expenses.
- Surgeon, anesthetist, medical practitioner, consultants or specialist fees.
- Anesthesia, blood, oxygen, operation theatre charges, surgical appliances, medicines and drugs, diagnostic materials and X-Ray, dialysis or chemotherapy.
Major Exclusions
Actual Physical Damage Assessment
Physical loss verification is not considered under parametric policies.
Non-Trigger Events
No payout if predefined parameters are not breached, even if losses occur.
Man-Made Disasters
Events such as war, riots, or sabotage are excluded.
Localized Asset Damage
Individual asset-level losses without regional trigger activation are not covered.
Policy Period Outside Events
Events occurring outside the active policy period are excluded.
Data Source Disputes
Claims cannot be raised against officially recorded data outcomes.
Operational Negligence
Losses arising from poor maintenance or internal failures are excluded.
Customization Beyond Agreed Terms
Any changes outside the predefined trigger structure are not permitted mid-policy.
- If the appropriate waiver is not opted for, then the policy will not cover
- Treatment of pre-existing illnesses.
- Any treatment for illnesses/diseases within the first 30 days of the policy, unless it is an accident.
- Treatment of specified illnesses for the first year of the policy.
- Certain diseases like hernia, cataract, piles, sinusitis, etc are excluded during the first year of operation in the cover.
- Any claim arising out of or traceable to pregnancy.
- Ayurvedic, homeopathy, naturopathy or any other form of local medication.
- Alcoholism, drug abuse, and AIDS.
- Dental treatment or surgery unless it requires hospitalization.
- Cost of spectacles.
- Vaccination and inoculation.
- Cosmetic treatment.
Your Journey to Insurance Manager
When can I Claim?
A claim under Parametric Insurance can be registered in the below circumstances:
- When predefined weather or catastrophe trigger conditions are breached during the policy period
- Once verified data from approved sources confirms the trigger event
- No manual claim filing, surveys, or documentation is required
- Payout is automatically initiated after trigger validation
- Claim status and payout progress can be tracked in real time on the Insurance Manager platform
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