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Climate change has now become our reality. From extreme heat to unseasonal rains, drought somewhere, and flood somewhere, it has become a common thing now. We have to bear the loss of rapidly changing weather in today's life. But, do you know that you can also insure the damage caused by the weather? Today we are going to tell you about such insurance.

What is ClimateSafe Insurance?

ClimateSafe Insurance is a parametric insurance that provides claims based on predetermined seasonal triggers (such as extreme heat, cold, or heavy rain). This insurance is beneficial for those who are particularly vulnerable to climate risk. It includes delivery partners, drivers, domestic helpers, construction workers, retail shop owners, and common citizens. This insurance is already available in many countries. In India, it has been started by Bajaj Allianz General Insurance.

How does this insurance work?

In ClimateSafe Insurance, predetermined thresholds are calculated using historical and current weather data. If the weather conditions exceed these limits, the policyholder automatically gets their claim. There is no need to claim this.

What risks does this insurance cover?

Ashish Aggarwal, Head of Agri Business, Bajaj Allianz General Insurance in India, said that at present ClimateSafe Insurance covers losses caused by excessive rainfall, high temperatures, and low temperatures. It provides financial assistance in situations where weather events affect daily income or lifestyle.

Understand the math of the claim with an example.

Risk period: 15 days

Insured amount: ₹ 500 per day (total ₹ 7500)

Trigger: 42 degree Celsius maximum temperature
If the temperature remains 42 degrees or more for 5 days in the policy period, the claim amount will be ₹ 2500. If the temperature remains above 42 degrees on all 15 days, the full insurance amount of ₹ 7500 will be paid.

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