Street vendors are an integral part of India’s urban economy, providing a wide array of goods and services. However, their hard-earned money and assets remain vulnerable to various risks. Insurance can offer them a safety net to protect their livelihoods when unforeseen events occur. Here’s a guide to understanding the types of insurance and government initiatives available for street vendors in India.
Liability Coverage: A Shield Against Legal and Financial Risks
Why Liability Insurance Matters:
Liability insurance is crucial for street vendors as it protects them from financial loss arising from claims or lawsuits due to injuries or damages caused during their business operations.
For instance, if a customer falls ill after consuming food sold by a vendor, liability insurance can cover medical expenses and legal fees, safeguarding the vendor’s financial stability.
Asset Protection: Safeguarding the Essentials
Insuring Carts, Goods, and Equipment:
Street vendors can now insure their essential business assets, including carts, inventory, and equipment, against risks such as theft, floods, fires, and other disasters.
Affordable Premiums:
Premiums for such insurance policies start as low as ₹500 per year, depending on the insured value and associated risks. This cost-effective solution ensures that vendors can secure their livelihoods without straining their finances.
Health Security: Protecting Vendor Well-Being
The Necessity of Health Insurance:
Given the physically demanding nature of their work and exposure to harsh environmental conditions, health insurance is essential for street vendors.
Ayushman Bharat Scheme:
The government’s Ayushman Bharat scheme offers free health coverage of up to ₹5 lakh per family per year for secondary and tertiary care hospitalizations. This initiative ensures vendors and their families can access critical medical treatments without depleting their savings.
Leveraging Government Schemes: Financial Support and Insurance Benefits
Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi):
The PM SVANidhi scheme provides street vendors with collateral-free loans of up to ₹10,000 at subsidized rates, helping them access working capital to sustain their businesses.
Insurance Benefits:
Registration under these schemes also qualifies vendors for free accidental and life insurance, enhancing their financial resilience against unforeseen events.
Why Insurance is Essential for Street Vendors
Street vendors face unique challenges and risks, from natural disasters to health issues. Insurance offers them peace of mind, financial stability, and the means to recover from setbacks. With affordable premiums and government-backed initiatives, vendors can secure their livelihoods and focus on growing their businesses.
Through liability insurance, asset protection, health coverage, and government support, India’s street vendors can navigate uncertainties with confidence, ensuring their vital role in the urban economy remains protected.
