Understanding insurance for street vendors in India
What's the story
In India, street vendors are the lifeblood of the urban economy, selling everything from food to clothes to knick-knacks.
But their hard-earned money can be at risk because, well, life happens.
Insurance can help protect them when things go wrong.
This article provides practical insurance advice for street vendors in India, helping them navigate the world of coverage with confidence.
Liability coverage
Importance of liability insurance
Liability insurance is vital for street vendors because it shields them from financial loss resulting from claims or lawsuits related to injuries or damages they cause to third parties or their property during their business activities.
To illustrate, if a patron gets sick after eating a vendor's food, liability insurance would handle the expenses associated with medical costs and potential legal fees, protecting the vendor's financial well-being.
Asset safety
Asset protection through insurance
Street vendors can now insure their carts, goods, and equipment.
This insurance provides coverage against theft, damage caused by natural disasters such as floods or fires, and other unexpected occurrences.
With premiums as low as ₹500 per year based on the sum insured and risks involved, it offers an affordable way to secure one's livelihood.
Health security
Health insurance: A must-have
Considering the strenuous nature of their work and vulnerability to environmental conditions, health insurance is crucial for street vendors.
It guarantees that you can receive necessary medical care without exhausting your hard-earned savings.
Government initiatives such as Ayushman Bharat provide coverage of up to ₹5 lakh per family per year for secondary and tertiary care hospitalization, ensuring access to necessary treatments at little or no cost.
Scheme benefits
Navigating government schemes
The government of India aids street vendors through the Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme, providing collateral-free loans up to ₹10,000 at subsidized rates for working capital.
Registration in these schemes further qualifies vendors for free accidental and life insurance, bolstering their financial stability and resilience against unexpected hardships.