A New Kind of Safety Net for Vendors in India’s Scorching Heat
As the oppressive heat of summer settles over India, many small vendors face a difficult choice: venture out and risk their health or stay home and lose their income. Lata Solanki, a 42-year-old clothes seller, knows this struggle all too well.
Now, however, Lata has found relief through an innovative insurance scheme. This program starts paying out automatically when temperatures reach a certain level, allowing her to keep her finances stable while staying safe at home.
Under this “parametric” insurance model, Lata receives financial support if the temperature exceeds 43.72 degrees Celsius (110 degrees Fahrenheit) for two consecutive days. Although the payout may not be large, it offers her some much-needed assistance. “At least we feel there is some support,” she shared while in Ahmedabad, one of India’s hottest cities. “Because of the heat, the fan runs day and night. The bill goes up.”
Before joining this program in 2023, Lata worked through a severe heatwave and ended up falling ill, forcing her to take 20 days off and losing around 2,000 rupees (about US$21) in earnings.
This new approach to insurance is offering hope to vendors like her, providing a safety net during extreme weather conditions.
