Kathmandu. The Government of India has started preliminary talks with insurers on the issue of formulating a nationwide climate-related insurance programme to provide relief to people affected by rising temperatures and disasters such as floods and landslides due to climate change.
According to the Asian Insurance Post, the scheme will be based on the weather index. Under this, the insured will receive a pre-determined payment in case specific weather limits such as rainfall, temperature or wind speed are exceeded.
The move would also help the government, which now uses funds set aside for disasters to help states with adverse climate events. Since insurers bear more risk, it will help control the cost of the farmer.
Nepal, one of the South Asian countries most vulnerable to climate change, implemented a seasonal index-based insurance programme a decade ago with technical and financial support from donor agencies. In Nepal, this program is limited to a limited number of districts in Karnali, Bardiya and Sudurpaschim.
