AXA Re looks into new loss-of-income protection scheme in event of pandemic

AXA Re, which has a branch in India, has recently initiated talks with about three to four state governments in India to create an insurance product to cover loss of income during pandemics, according to sources.

The company has recommended that employees with a gross annual income of up to INRR250,000 ($3,266) be considered for the scheme, which can provide a regular payout over a specific time period. According to the proposal, the state government can provide a list of workers to be insured, pay the premium and receive compensation under the scheme.

At present as the number of COVID-19 cases continues to rise, various state governments are bearing a huge financial burden on account of payouts to informal sector workers.

Mr Thomas Buberl, CEO of AXA, said in an interview with French newspaper Le Journal du Dimanche, that an insurance scheme backed by a pooling system involving government and private insurers could be looked at, to counter pandemics.

India has almost 90% of the working population in the informal economy, totalling about 400m. They are at risk of losing their jobs and falling deeper into poverty during the COVID-19 crisis, according to a recent report by the International Labour Organisation.