- 26,000 families in Ahmedabad, Surat and Vadodara will get Rs 2,000 if maximum temperatures breach the danger marks
- For this insurance cover, the families will have to pay a premium of Rs 354 every year
- This transformative insurance product, developed in partnership with Global Parametrics (GP), Howden Group, and Digit General Insurance, marks a significant milestone in building the resilience of marginalized communities against the escalating effects of climate change
NE NEWS SERVICE
AHMEDABAD, APRIL 29
Mahila Housing Trust (MHT) on Friday announced the first-of-its- kind Climate Risk Insurance (CRI) specifically designed to protect women in the informal sector from the devastating impacts of extreme heat waves. This transformative insurance product, developed in partnership with Global Parametrics (GP), Howden Group, and Digit General Insurance, marks a significant milestone in building the resilience of marginalized communities against the escalating effects of climate change.
Addressing the Impact of Extreme Climate Events have long posed significant challenges for the poor and marginalized, particularly those residing in slums and informal settlements. Women, in particular, bear a disproportionate burden. With a substantial 80% of India’s workforce engaged in the informal sector, a majority of whom are women, the lack of insurance coverage against extreme weather phenomena like heat waves or floods exacerbates their vulnerability. Consequently, they often experience financial strain and health setbacks when they forego employment and income due to adverse weather conditions. Additionally, healthcare expenses rise, particularly for women who bear a dual care-giving burden, impacting both their health and financial well-being. Moreover, women endure greater work and income loss compared to men in such circumstances.
At the launch ceremony of Climate Risk Insurance (CRI), Bijal Brahmbhatt, Director of Mahila Housing Trust, said: “As we unveil our Climate Risk Insurance, we stand committed to build the resilience of the most vulnerable, particularly women in the informal sector, against the impacts of extreme weather events. Through proactive measures and strategic partnerships, we aim to forge a path towards resilience and security for those most in need.”
Bhavana Maheriya, Programme Manager, MHT, highlighted the extensive research conducted to tailormade the insurance scheme to the needs of informal workers. Through affordability studies and direct engagement with women across diverse communities, valuable insights were gathered to shape the scheme.
Mahila Housing Trust’s approach
MHT takes a holistic approach, aiming not only to provide insurance but also to educate women about heat stress. The Trust assists them in implementing preventive and adaptive measures such as cool roofs, solar caps, and tree plantations. Insurance covers the remaining risk, ensuring comprehensive protection.
Introducing MHT’s Climate Risk Insurance (CRI)- Recognizing the urgent need to provide a safety net for vulnerable communities, MHT has developed a pioneering insurance scheme tailored to the specific needs of informal workers. The CRI aims to provide financial protection to individuals unable to work during extreme heat conditions, with a focus on cities like Ahmadabad, Vadodara, Surat, Tapi, Gandhinagar and Anand in Gujarat during its pilot phase.
Consequently, premiums have been thoughtfully set at an affordable rate for the summer season, spanning from April to July. The minimum coverage for this premium is set at three days’ worth of income loss / health expenditure with the maximum coverage extending to six days’ worth of income loss / health expenditure.
A Model for Empowerment and Resilience
Through the utilization of excess heat indexes, MHT ensures timely support for individuals impacted by extreme temperatures. Now, 26,000 families in Ahmedabad, Surat and Vadodara will get Rs 2,000 if maximum temperatures breach the danger marks. Payments are triggered when predetermined thresholds are breached, like 43.72°C in Ahmedabad, 43.6°C in Baroda and 37.67°C in Surat for two consecutive days. For this insurance cover, the families will have to pay a premium of Rs 354 every year.
Mahila Housing Trust, in collaboration with Global Parametrics (GP), Howden group and Digit General Insurance aims to serve as a model for other organizations and countries in addressing the needs of the poor and marginalized affected by climate change.
Building resilience through education
In addition to the CRI, MHT has developed innovative educational tool – the ‘Gud Luck climate risk insurance game’ to raise awareness and empower communities to adapt to climate risks. By providing training and interactive gameplay, MHT aims to increase awareness and understanding of climate risks among vulnerable communities, paving the way for greater resilience in the face of climate change.
On this occasion, Siraz Hirani (Senior Programme Management Specialist, Mahila Housing Trust), Raji Gorana (Consultant, Mahila Housing Trust), Dhvani Shah (Surat Mahila Nagrik Dhiran Sahakari Mandali Ltd.), Nital Patel (Shree Swashrayi Mahila Nagrik Dhiran Sahakari Mandali, Ltd. Vadodara), Chirayu Brahmbhatt (Development Associate, Mahila Housing Trust) were also present.
