Reliance General Insurance, a 100% subsidiary of Reliance Capital, introduced first of its kind Livelihood Protection Insurance Cover dedicated for Daily-income earners from the grievous impact of weather vagaries on their income and livelihood, company said.
This IRDAI approved product under Sandbox guidelines has been designed in a way where the weather risk is monitored from Automated weather stations from Indian Meteorological Department (IMD) or by private Independent third parties involved in supply of weather data and claim is automatically calculated using this procured weather data. Hence, the claims will be derived comparing the actual weather from defined benchmark, the company statement said.
In case, if the actual weather goes above the defined benchmark the insured would be eligible for claims. The policy will be offered for weather related risks triggered due to – wind (cyclone, dust / sand storms), temperature (cold & heat waves), rainfall (floods / excess rainfall), and Air Quality Index (AQI).
The best feature of this insurance policy is that it will provide the immediate assistance to insured in case of weather vagaries as it covers the weather-based risk particular to a geographical location during a time-period that’s most affected. In the pilot phase, the policy is being launched for only 10,000 customers in India, and the premium is kept extremely low and affordable.
Commenting on the recent development, Rakesh Jain, ED & CEO, Reliance General Insurance, said, “In the last few years, India has witnessed multiple weather related catastrophes that pose a serious threat to the normal lives and livelihoods of the daily earners. Therefore, prioritizing the financial resilience of the self-employed and daily waged individuals takes top priority for us. The Livelihood Protection policy has been introduced in line with our vision to provide insurance to the next-billion Indians.”
As a traditionally underinsured and one of the most acutely vulnerable countries to natural disasters, Reliance General Insurance aims to expand the blanket of financial security for the ones who need it the most, through the Livelihood Protection Insurance Cover, statement said.
