How Insurance Saved 46,000 Women From Dangerous Labor In The Sweltering Heat

Between May 19 and May 25, Ahmedabad saw daily highs of over 43C (109F), which made working conditions extremely uncomfortable for many of the laborers who are essential to the region's economy.

The tin-roofed residence of Lataben Arvindbhai Makwana, forty, has a small ceiling fan and no ventilation, making it intolerable for her to operate her sewing machine. Being paid on a daily basis as a wage worker meant that she was not making enough money to buy herself and her children's blood pressure medicine.

Every summer, it becomes worse, according to Ms. Makwana. For those with hypertension like her, the intense heat is particularly perilous.

Millions of Indians are forced to choose between working in hazardous conditions or going hungry as a result of climate change increasing temperatures during heat waves. However, a program is now helping some women, like Ms. Makwana, to make a third option: cease working for a few hours at least.

Ms. Makwana and thousands of other women were informed by ICICI Lombard, an insurance business, that they would get a portion of their monthly salaries as soon as temperatures in Ahmedabad above 43.6C. The program makes use of parametric insurance, which makes payments when a specific metric—like a daily high temperature—is fulfilled.

A total of $340,000 was given to nearly 46,000 women in 22 Indian districts as compensation for the heat waves that occurred last month. There are roughly 50,000 women involved in the program. The ₹ 750 ($9) that Ms. Makwana received from her insurance was sufficient to pay for food and medicine for a few days. (That amount was in addition to a separate ₹ 400 charity payout that was made when the temperature went above 40C for the first time.)

The Self-Employed Women's Association labour union runs the insurance program. Its premium is paid for partly by the women enrolled in the program, with a charity covering the remaining portion. The pilot program launched last year and is set to run until April 2025.

According to Kathy Baughman McLeod, CEO of Climate Resilience for All, a non-profit that funds, develops, and provides technical assistance for the initiative, it has been "successful." The nonprofit, which works to shield vulnerable populations and women from intense heat, intends to take its insurance scheme global.

Baughman Mcleod believes the Indian program's funders can stay on board for a few more years. The ultimate goal is to enroll SEWA's 2.9 million members so that the plan may be fully funded by premiums paid by women.

"We find that impoverished women don't always desire charity," stated Reema Nanavaty, SEWA's general secretary. "Once they see that this program is addressing their dire needs, I'm sure the women would start contributing toward the program." She said that under the final proposal, each woman's monthly payment would be roughly equivalent to a day's pay.

The reason standard insurance plans function is that a small percentage of the population requests a payout each year from those who pay premiums. The premiums for the following year must increase to reflect the outgoings, which might easily become unsustainable if the majority of them demand a payout each year, as is sometimes the case with heat waves.

Admittedly, Baughman McLeod is unsure if such an insurance policy can be made financially sustainable. "It's a solution for the urgent needs of right now, when women are developing blisters, or worse, suffering miscarriages, as a result of working in extreme heat," she stated. "This is a humanitarian crisis affecting those who are completely blameless for the climate impacts"

Besides, the insurance program can't address every issue, she noted. Thus, in addition to their current projects, Climate Resilience for All and SEWA are developing educational programs that inform women about the health risks associated with severe heat and the reasonable precautions they can take to prevent suffering. Members of SEWA occupy over 100 different vocations, ranging from street food vendors to construction workers. Interventions therefore differ; they can be as basic as bringing an umbrella for shade or collaborating with a construction business to guarantee that people have access to cold drinking water.

Having cash on hand might still be quite important. The poorest women in India are frequently compelled by wage loss to turn to unofficial money lenders who demand exorbitant interest or personal favors.