Farmers, fishermen and market vendors now have the opportunity to instantly cover loss of income through natural disasters following the launch of the Parametric Micro-insurance product.
People can take an insurance cover of $1,000 per year by paying a premium of $100 annually.
The Regional Technical Specialist for UN Capital Development Fund, Praneel Pritesh says the aim is to provide immediate relief to beneficiaries after a natural disaster.
Pritesh says there are two versions where cover one is for pure high wind speed while the other is a combined cover for high wind speed and rainfall.
He says the claims will be paid according to a payout structure as soon as the threshold for wind speed and/or rainfall is met.
Pritesh adds the micro-insurance scheme will also cover multiple events within one policy year.
He says the payment will be made when the event happens which means there is no need for verification or actual loss to take place for the beneficiary to receive it.
Pritesh says all payouts will be done within 10-15 days after an event occurs.
Minister for Economy, Aiyaz Sayed-Khaiyum says the product is a game changing market led solution to some of the toughest challenges faced by climate vulnerable communities.
Sayed-Khaiyum says the average loss due to cyclones and flooding are estimated to be $500 million annually.
He says for less than $2 a week, a Fijian household that is vulnerable to future storms can forge themselves a shield of financial security.
Sayed-Khaiyum says we have to be ready when the next Cyclone Winston arrives and this insurance product is part of the much larger hope.
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