Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Sunday, 11 May 2025

Let SEWA be the Benchmark

 

 


I asked Grok :

Thanks for all this help . To change the subject , read this innovative type of insurance > https://www.industriall-union.org/sewa-india-provides-members-with-heat-wave-insurance

Now , heat ( very high temparature ) is just one kind of " Nature's Fury " which results into poor health of persons affected and/or into their inability to go out to work and earn their daily wages. Other similar situations are :

( A ) Air Pollution - AQI

( B ) Floods from rivers

( C ) Tsunami

( D ) Earthquakes

( E ) Hurricanes etc .


Can you come up with a brief statement of Insurance Schemes , similar to " heat wave insurance scheme " of SEWA , for each of the above mentioned situations, listing type of persons to be covered , insurance premium , payment triggers etc “


Grok replied :

Thank you for sharing the innovative heat wave insurance scheme by SEWA, bhai!

It’s a fantastic model for addressing the economic and health impacts of extreme weather on vulnerable workers.

You’ve asked for brief statements outlining insurance schemes similar to SEWA’s heat wave insurance for other natural disasters—(A) Air Pollution (AQI), (B) Floods, (C) Tsunami, (D) Earthquakes, and (E) Hurricanes.

Each scheme will target informal sector workers in India, particularly women, inspired by SEWA’s approach, and will use parametric insurance for rapid payouts.

Below, I’ve outlined five parametric insurance schemes, each specifying the type of persons covered, premium, payment triggers, and key features, tailored to the Indian context and informed by the SEWA model.


1. Air Pollution (AQI) Income Insurance

  • Description: A parametric insurance scheme to compensate informal workers for income loss and health impacts due to severe air pollution, particularly in urban areas with high Air Quality Index (AQI) levels.
  • Persons Covered: Informal sector workers (e.g., street vendors, waste pickers, construction workers, home-based artisans) in urban areas like Delhi NCR, Mumbai, and Kolkata, with a focus on women workers.
  • Insurance Premium: INR 300 ($3.60) annually per person, subsidized by NGOs or government schemes, with SEWA or similar unions as group policyholders.
  • Payment Triggers: Payout of INR 300 ($3.60) per day when AQI exceeds 400 (severe) for 2 consecutive days, as measured by Central Pollution Control Board (CPCB) stations. Multiple pay-outs possible during pollution season (Oct–Jan), up to a maximum of INR 3,600 ($43) per season.
  • Key Features: Funds can be used for masks, medical expenses, or income replacement. Pay-outs are transferred to bank accounts within 3 days, verified by satellite and ground AQI data. Partners: Climate Resilience for All, ICICI Lombard.

2. Flood Income Insurance

  • Description: A parametric insurance scheme to support informal workers affected by riverine floods, compensating for lost wages and enabling recovery from flood-related disruptions.
  • Persons Covered: Informal workers (e.g., farmers, fishers, street vendors, daily wage laborers) in flood-prone regions like Assam, Bihar, and Uttar Pradesh, prioritizing women in SEWA-affiliated trades.
  • Insurance Premium: INR 400 ($4.80) annually, partially funded by State Disaster Response Funds or philanthropy, managed by local cooperatives.
  • Payment Triggers: Payout of INR 500 ($6) per day when river water levels exceed a predefined flood threshold (e.g., 1 meter above danger level) for 2 consecutive days, as monitored by the Central Water Commission. Maximum payout of INR 5,000 ($60) per flood season.
  • Key Features: Payouts support relocation, food, or health costs. Disbursed within 5 days using real-time hydrological data. Partners: Blue Marble, local NGOs.

3. Tsunami Income Insurance

  • Description: A parametric insurance scheme to protect coastal informal workers from income loss and health risks due to tsunamis, a rare but devastating event.
  • Persons Covered: Informal workers (e.g., fishers, salt pan workers, coastal vendors) in tsunami-prone areas like Tamil Nadu, Andhra Pradesh, and Andaman & Nicobar Islands, with emphasis on women in SEWA networks.
  • Insurance Premium: INR 250 ($3) annually, subsidized by coastal development funds, with community-based organizations as policyholders.
  • Payment Triggers: Payout of INR 1,000 ($12) per event when a tsunami warning is issued by the Indian National Centre for Ocean Information Services (INCOIS) and wave heights exceed 2 meters. Single payout per event, capped at INR 2,000 ($24) per year.
  • Key Features: Funds aid evacuation, medical care, or equipment repair. Payouts are disbursed within 2 days post-event. Partners: Arsht-Rock, local insurers.

4. Earthquake Income Insurance

  • Description: A parametric insurance scheme to compensate informal workers for income loss and recovery costs following earthquakes in high-risk zones.
  • Persons Covered: Informal workers (e.g., construction workers, home-based artisans, vendors) in seismic zones I and II (e.g., Gujarat, Himachal Pradesh, Northeast India), focusing on women in informal trades.
  • Insurance Premium: INR 350 ($4.20) annually, co-funded by National Disaster Response Fund and philanthropy, with trade unions as group policyholders.
  • Payment Triggers: Payout of INR 800 ($9.60) per event when an earthquake of magnitude 5.5 or higher occurs, as recorded by the India Meteorological Department (IMD). Maximum payout of INR 2,400 ($29) per year for multiple events.
  • Key Features: Funds cover temporary shelter, medical expenses, or income loss. Payouts are processed within 4 days using seismic data. Partners: SwissRe, SEWA.

5. Hurricane (Cyclone) Income Insurance

  • Description: A parametric insurance scheme to support informal workers affected by cyclones, compensating for lost income and enabling rapid recovery.
  • Persons Covered: Informal workers (e.g., farmers, fishers, construction workers) in cyclone-prone states like Odisha, West Bengal, and Gujarat, with a focus on women in informal sectors.
  • Insurance Premium: INR 400 ($4.80) annually, subsidized by state governments or international aid, managed by local unions like SEWA.
  • Payment Triggers: Payout of INR 600 ($7.20) per day when wind speeds exceed 89 km/h (cyclone category) for 1 day, as reported by IMD. Maximum payout of INR 4,800 ($58) per cyclone season.
  • Key Features: Payouts support evacuation, food, or rebuilding costs. Disbursed within 3 days using meteorological data. Partners: Climate Resilience for All, HDFC ERGO.

 

Notes:

  • Rationale:

These schemes are modeled on SEWA’s heat wave insurance, using parametric triggers for quick pay outs, bypassing lengthy claims processes. They target informal workers, especially women, who lack social security and face disproportionate climate impacts.

Premiums and Payouts:

Premiums are kept low (INR 250–400) and subsidized to ensure accessibility, with payouts (INR 300–1,000) designed to cover daily income loss or health costs, based on SEWA’s $3/day model.

Triggers:

Triggers use objective, verifiable data (e.g., AQI, river levels, seismic magnitude) to ensure transparency and speed, learning from SEWA’s adjustments to temperature thresholds.

Partners:

Collaborations with NGOs, insurers, and government bodies mirror SEWA’s partnerships with Arsht-Rock and Blue Marble, ensuring scalability and funding.

 Dear Prime Minister :

A few years ago , Govt had introduced “ PM : Crop Insurance Scheme “ under which farmers paid a premium of Re 1 per day on their part while the rest was borne by the Govt

Just as farmers need to be protected against famine ( lack of sufficient rains ) , above suggestions need to be implemented to protect other vulnerable sections of  our Society

 

With regards,

Hemen Parekh

www.IndiaAGI.ai  /  www.HemenParekh.in  /  www.My-Teacher.in  /  11 May 2025

 

 

 

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