In certain regions of India, the Air Quality Index breaches 300 for a few months every year, which is hazardous. To mitigate this, the local authorities ban construction activities, which impact many informal construction workers' livelihoods. During the summer months, the temperatures soar much beyond 42 °C, and outdoor informal workers face the brunt, with health impacts and potential livelihood loss.

An innovative Air Quality Index (AQI)-linked parametric insurance product was developed. The product was designed to have an automatic cash transfer to the bank account of the beneficiary if the AQI threshold was breached. A heat stress insurance was also developed this time having a health cover and a cash transfer component. The product was designed such that hospitalization cash assistance would be provided and if the temperature thresholds set are breached there would be a direct cash payout to beneficiaries.