Loss of Wages
A State Labour Department wanted to protect the income of agricultural labour in the State due to loss of work during drought. They purchased a drought index insurance cover that pays out lost wages on notification of drought.
Who Can Benefit
- Agricultural or other Seasonal Labourers
- Labour Departments of Government
- Companies employing labour workforce
- Fishermen Unions
- Construction Workers
Rainfall
Cyclone
Flood
Heat Stress
Sample Policy
A State Labour Department purchased a drought index cover that pays out lost wages based on drought warning/notification.
Coverage Terms
POLICYHOLDERState Labour Department
LOCATIONKarnataka
DATA SOURCENotification of Drought by State Disaster Management Authority
PAYOUT BASED ONSeverity & Duration of Drought Period
COVERAGE PERIOD1st July to 30th November
PAYOUT CONDITION 1Early Drought Warning for at least 15 days during risk period
PAYOUT LEVEL 1Moderate Drought pays 10 Days' Wages; Severe Drought pays 20 Days' Wages
PAYOUT CONDITION 2Drought Declared for more than 70% duration of risk period
PAYOUT LEVEL 2Mild: 10% of wages during risk period; Moderate: 25%; Severe: 100%
MAX PAYOUT100% of seasonal wages
Payout Sheet
For illustration purposes, a sample of one cover is presented below. Generally, covers using multiple indices are offered for comprehensive coverage.
More products
Explore other parametric covers built for different risks and stakeholders.
