Insurance helped 46,000 Indian women escape deadly jobs during heat wave

Between May 19 and May 25, 2024, Ahmedabad had daily highs of above 43°C (109°F), which made working conditions very uncomfortable for many of the laborers who are essential to the region’s economy. These extreme temperatures highlighted the dangerous conditions faced by those in deadly jobs, exacerbating the challenges they endure daily.

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.

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 daily as a wage worker meant that she was not making enough money to buy herself and her children’s blood pressure medicine.

ICICI Lombard, an insurance business, informed Ms. Makwana and thousands of other women, 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 certain metric—like a daily high temperature—is satisfied.

“It’s getting worse every summer,” Ms Makwana said. The extreme heat is especially dangerous for people like her who suffer from hypertension.

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 over 50,000 women enrolled in the program. Ms Makwana’s insurance payout was ₹ 750 ($9), enough to cover food and medication for a few days. (That sum came on top of a separate charity payout of ₹ 400 when the temperature breached 40C the first time.)

The work union administers the insurance program Self-Employed Women’s Association. The ladies who are enrolled in the program contribute a portion of the premium, with the rest amount being covered by a charity. Launched in the previous year, the experimental program will run until April 2025.

Baughman Mcleod believes the Indian program’s donors can stay on board for a few more years. The ultimate goal is to obtain SEWA’s 2.9 million members signed up, which would allow the plan to be funded entirely by women paying the premiums.

Baughman McLeod readily admits that she doesn’t know if such an insurance program can become financially viable. “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 said. “This is a humanitarian crisis affecting those who are completely blameless for the climate impacts”

In any event, she asserted, the insurance plan is unable to address every issue. 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 may take to prevent suffering. Members of SEWA occupy over 100 different vocations, ranging from street food sellers to construction workers. Interventions therefore differ; they might be as basic as bringing an umbrella for shade or collaborating with a building business to guarantee that people have access to cold drinking water.

According to Kathy Baughman McLeod, CEO of Climate Resilience for All, a non-profit that funds, develops, and provides technical assistance for the program, it has been “successful.” The nonprofit, which works to shield vulnerable populations and women from intense heat, intends to take its insurance program global. “Our experience is that poor women don’t want charity always,” said Reema Nanavaty, general secretary of SEWA. “Once they see that this program is addressing their dire needs, I’m sure the women would start contributing toward the program.” The eventual plan would see the premium for each woman be about a day’s wage every month, she added.

“The biggest value the insurance payment gives them is dignity and self-respect,” said Ms Nanavaty. The reason standard insurance programs function is that a small percentage of the population requests a payout each year from those who pay premiums. The premiums for the next year must increase to reflect the outgoings, which might easily become unsustainable if the majority of them demand a payment each year, as is sometimes the case with heat waves.

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

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