With extreme temperatures become more frequent and more damaging, Taiwan has started a pilot insurance programme to provide financial cover for vulnerable groups hospitalised due to heat-related illnesses.
The pilot programme, which has been classified under microinsurance, was launched earlier this month by Nan Shan Life Insurance and provides a fixed insurance benefit of NT$10,000 ($311) to policyholders, reported Taiwan News. Policyholders’ hospitalisation for heat-related conditions triggers the policy. Heat-related conditions can include heatstroke, heat exhaustion, heat syncope, and heat cramps.
The programme is being run as a pilot because, although heat-related illnesses are generally classified as diseases in Taiwan and are covered under health insurance, current regulations allow only microinsurance products to cover only life and accident insurance.
The programme focusses on low-income households and other eligible groups in selected urban areas that are affected by higher temperatures. Social welfare organisations have been designated as policyholders, and the premiums are paid by the organisations applying for the coverage.
Insurance Bureau Deputy Director-General Tsai Huo-yen said this programme is designed to provide basic protection against specific risks for economically disadvantaged groups or people who meet certain eligibility requirements.
The initial coverage areas will focus on urban heat island zones, where temperatures are typically higher than in surrounding areas. Authorities will assess whether to expand the program after reviewing the trial results.
Eligible participants will include family members of households classified as low-income or lower-middle-income under Taiwan’s Public Assistance Act, as well as elderly people receiving living allowances for lower-middle-income seniors under the Senior Citizens Welfare Act.