Too hot to work, too poor to stop: How insurance protects India’s informal workers during heatwaves
India’s informal women workers in Gujarat, including homemaker Lataben Solanki, suffer halved earnings during extreme heatwaves exceeding 40°C, but a parametric heat insurance program by Mahila Housing Trust (MHT) offers partial compensation since 2024. Covering 30,800 women in Gujarat and expanding to Delhi and Maharashtra in 2026, the policy pays out when temperatures breach 43.72°C, though payouts are capped at 2,000 rupees annually, while India’s 2024 record heatwaves worsened economic vulnerability for these workers.
In Ahmedabad, Gujarat, homemaker Lataben Solanki earns around 3,000 rupees monthly selling undergarments from a pushcart, but her income drops by half during summer heatwaves exceeding 40°C, forcing her to work only after 6pm. Since 2024, Mahila Housing Trust (MHT) has provided a parametric heat insurance policy to over 30,800 informal women workers in Gujarat, subsidizing premiums to 90 rupees for four months of coverage (April–July). Payouts trigger when temperatures surpass 43.72°C, with a maximum annual compensation of 2,000 rupees. The program expanded in 2026 to Delhi’s National Capital Region and parts of Maharashtra. In 2024, Solanki received 750 rupees after two consecutive days of extreme heat, using it to cover higher electricity bills. Cook Hasumati Kailesh Paramar, who earns 300 rupees daily, skipped work during heatwaves, using her 2024 payout to treat heat-stressed in-laws living in a tin-roofed house. India’s 2024 temperatures averaged 0.65°C above the long-term norm, marking the hottest year since 1901, per the India Meteorological Department (IMD). Heatwave days in northwest and central India rose from 2.5–5.5 annually (1981–2000) to 3.5–8.5 (2001–2020), exacerbating economic losses for vulnerable workers. MHT’s program aims to mitigate these impacts, though 2025 saw no payouts as temperatures fell below thresholds. Chirayu Brahmbhatt of MHT noted the insurance provides critical relief during extreme heat, which disproportionately affects informal workers. The initiative highlights climate-induced economic risks while offering scalable solutions for marginalized communities.
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