Weather Based Parametric Insurance

Weather events are becoming increasingly unpredictable. Floods, droughts, cyclones, and unseasonal rains can devastate livelihoods overnight. Traditional insurance processes — loss assessment, claim filing, settlement delays — add to the distress. Parametric Insurance changes all of that

Parametric Insurance

Index-Based Trigger

Payout is linked to an independent weather index — rainfall, temperature or wind-speed — rather than a physical damage assessment.
Automatic Settlement

Once the agreed threshold is breached, the payout process begins without a surveyor visit or loss adjustment.
Speed

Claim settled within days of the event
Full Transparency

The trigger, payout amount and data source are all defined in the policy upfront, before cover incepts.
No Moral Hazard

Payment is tied to an independent data reading, not the policyholder's own reported loss, leaving little room for dispute.
Scalable Design

One product structure can cover a large, geographically spread group of policyholders — such as farmers across a district, or a lender's borrower portfolio — under a single design.

How it Works

Define Trigger

Agree on weather parameter & threshold

Data Source

IMD / satellite weather index

Event Occurs

Breach recorded by data provider

Auto Payout

Payment released without claim filing

Funds Received

Money in account within days

Potential Application Areas With Examples

Industry-specific parametric solutions — triggered by weather data, settled without delay

Personalised Approach Trigger: Seasonal rainfall < 200mm (Jun–Sep) OR excess rain > 400mm
Farmers, FPOs, Agri Co-ops, Agri-lenders

Example: A wheat farmer in Rajasthan receives ₹15,000/acre automatically if June–August cumulative IMD rainfall in his district falls below 180mm — no crop-cutting experiment needed.

POWER & RENEWABLE ENERGY Trigger: Wind speed < 4 m/s for 20+ consecutive days
Wind farm operators, Solar IPPs, Renewable energy lenders

Example: A 50MW wind farm in Tamil Nadu gets compensated for lost generation revenue automatically when average wind speed drops below 4 m/s for 20+ days in Q3, protecting debt servicing capacity.

CONSTRUCTION & INFRASTRUCTURE Trigger: Rainfall > 50mm on any scheduled working day
EPC contractors, Infra developers, Municipalities, PPP projects

Example: A highway contractor in Maharashtra triggers payout for each day rainfall exceeds 50mm during the construction window, covering idle labour and equipment standby costs without filing delay claims.

TRAVEL, EVENTS & HOSPITALITY Trigger: Cyclone landfall / Rainfall > 100mm on event day
Airlines, Hotels, Wedding planners, Event organisers, Tourists

Example: A beach resort in Goa activates a fixed payout if a cyclone warning (Category 2+) is issued within 48 hrs of a booked event weekend, covering venue costs and guest refunds automatically.

AQUACULTURE & FISHERIES Trigger: Ambient air temperature > 40°C for 7+ consecutive days at nearest IMD coastal station
Fish farmers, Prawn cultivators, Fishermen co-operatives

Example: A prawn farmer in Andhra Pradesh receives automatic compensation when the IMD station at Kakinada/Machilipatnam records 40°C+ for 7 consecutive days.

RETAIL & FMCG Trigger: Temperature > 42°C for 10+ days OR rainfall causing city-level disruption
Consumer goods brands, Retail chains, Quick commerce platforms

Example: A beverage company covering North India triggers payout when Delhi records 42°C+ for 10 consecutive days in April-May, offsetting lost summer-peak sales caused by heatwave-linked curfews.

MICROFINANCE & AGRI-LENDING Trigger: District rainfall < 75% of Long Period Average (LPA) for the season or district rainfall > 150% of LPA
MFIs, Co-operative banks, Agri-NBFCs, SHGs

Example: An MFI with 10,000 rural borrowers in Odisha triggers a portfolio protection payout when district rainfall > 150% of LPA.

LOGISTICS & SUPPLY CHAIN Trigger: Fog visibility < 200m for 5+ days / Cyclone disruption at port
3PL providers, Fleet operators, Port authorities, Cold chain companies

Example: A logistics company operating in North India receives a fixed daily payout for each day dense fog (< 200m visibility) grounds its fleet – covering fixed overheads during forced shutdowns.

PUBLIC HEALTH & GOVERNMENT Trigger: Heat index > 45°C for 5+ days / Flood displacement index
State governments, Municipal bodies, NGOs, Disaster relief agencies

Example: A state government pre-arranges parametric cover that releases funds within 72 hours of a heatwave declaration — enabling immediate deployment of cooling centres, water tankers and medical teams.

Key Advantages at A Glance

Instant Payouts
Data Driven
No Disputes
Pan-India Scale
Customisable
Basis Transparency

Disclaimer: This flyer is issued by Salasar Services Insurance Brokers Pvt. Ltd. for general information only and does not constitute an offer, solicitation, advice, or recommendation. The process of the industries, the duration of replacement lead time and the loss types assumed for exposure analysis are typical and not representative of any size, scale, capital outlay, technology, alternate production capacity or supply chain advantages of particular production facilities. Product features, benefits, terms, conditions, exclusions, and premiums are subject to the insurer’s underwriting and the applicable policy wording. Illustrations (if any) are indicative and for reference purposes only. Please read the sales brochure/prospectus and policy document carefully before concluding purchase of any policy. For complete details and personalized assistance, please contact us.

Meet The Team

Our team works with a unified vision of delivering best-in-class services in relation to broking, client servicing, underwriting, risk management & more.

Amitabha Chanda

Deputy Vice President

Soumyajit Hazra

Assistant Vice President

Shameem Ahmad

Manager

Amitabha Chanda

Deputy Vice President

Soumyajit Hazra

Assistant Vice President

Shameem Ahmad

Manager

Why Choose Salasar ?

Personalised Approach We believe in building relationships. Our advisory services are never one-size-fits-all. We take the time to understand your unique needs and craft solutions that align perfectly.

Expert Team Our team of seasoned insurance professionals and lending experts collaborate to deliver unmatched advisory services. You can trust our insights and recommendations to be well-informed and effective.

Client-Centric Your success is our priority. We measure our success by the success stories of our clients. When you partner with us, you gain a dedicated ally committed to your financial well-being.

Innovation The insurance landscape is evolving, and so are we. We continuously seek innovative approaches to better serve our clients, offering cutting-edge solutions that address emerging challenges.