Insuring the informal worker against the heat
The article discusses the emergence of 'parametric' heat-insurance products for informal workers in India, where payouts are triggered automatically when temperatures cross a pre-set threshold. It highlights initiatives by non-profits like Jan Sahas and SEWA, in partnership with insurance companies and CSR arms, to provide financial relief to vulnerable workers against climate-induced heatwaves. The piece also touches upon the challenges of funding such schemes, the behavioral impact on workers, and the broader context of climate change predictions by IMD and WMO.
The article discusses the emergence of 'parametric' heat-insurance products for informal workers in India, where payouts are triggered automatically when temperatures cross a pre-set threshold. It highlights initiatives by non-profits like Jan Sahas and SEWA, in partnership with insurance companies and CSR arms, to provide financial relief to vulnerable workers against climate-induced heatwaves. The piece also touches upon the challenges of funding such schemes, the behavioral impact on workers, and the broader context of climate change predictions by IMD and WMO.
Exam linkage
GS Paper 2: Social Justice (Welfare Schemes for vulnerable sections, informal sector issues). GS Paper 3: Environment & Ecology (Climate Change, impacts of heatwaves), Indian Economy (Insurance sector, disaster management).