May 15, 2025
Ahmedabad Using Heat Insurance for Informal Workers
When it's too hot to work, informal workers lose their daily wage. But now there is a solution!
What's happening?
Grassroots organizations in Ahmedabad launched parametric heat insurance schemes compensating informal sector women for wage loss during extreme heat days.
When maximum temperatures exceed predefined thresholds, policyholders receive automatic pre-determined payouts — no claim filing required.
Example: a Rs 354 annual premium yields Rs 750-1,250 payouts depending on temperature activation.
Why should you care?
Informal workers are on the frontlines of extreme heat — they can't work from home or sit in air-conditioned offices. When it's too hot to work, they lose their daily wage.
This provides essential safety nets for vulnerable workers facing income loss during dangerous heat, representing a crucial adaptation solution for marginalized communities.