[Anchor]
 
The government has decided to push forward with a pilot program for 'climate insurance' starting next year to compensate for damages caused by the climate crisis. Targeting 13,000 construction workers, the insurance will allow workers to receive about half of their average daily wage as insurance payouts even if work is suspended due to extreme heat.

Reporter Ha Jeongyeon has the details.

[Reporter]

[Citizen (on the 7th): It seems like it was one of the hottest days recently.]

With heatwaves becoming a daily reality, outdoor daily laborers are not only worried about heat-related illnesses, but frequent work suspensions due to heatwave warnings also threaten their livelihoods through reduced income.

[Ha Geun-ju / Construction worker (on the 12th): It is getting hotter, and most people just endure it and work. When we cannot work, it disrupts our livelihood.]

This is a parliamentary report document titled 'Current Status of Climate Insurance Promotion' from the Ministry of Climate, Energy and Environment, obtained by SBS.

The government plans to invest 5.0 billion won next year to launch the climate insurance pilot program.

The beneficiaries of the insurance will be around 13,000 people, accounting for 7% of all public construction workers nationwide.

If afternoon work is suspended due to a morning heatwave warning, workers will receive about 80,000 won in climate insurance payouts, which is half of the average daily wage. This benefit can be provided for up to 14 days.

A distinctive feature is the adoption of an 'index-based insurance' model, which automatically pays a predetermined insurance amount based on objective indicators such as weather changes, regardless of the scale of damage.

While this takes less time to disburse than general insurance that compensates after individual damage investigations, financial burdens on the insurance fund could increase. Therefore, the final application method is expected to be determined after comparative studies with general insurance.

In the National Assembly, a bill aimed at strengthening climate resilience and public safety against damages caused by the climate crisis has passed the standing committee.

The bill includes provisions stating that the government should endeavor to develop and promote climate insurance to prepare for climate disasters and damages, and to swiftly stabilize livelihoods.

[Kim So-hee / People Power Party lawmaker (National Assembly Legislation and Judiciary Committee plenary session, on the 11th): I think many people have experienced this year's heatwave and felt the strong need for adaptation measures against the climate crisis, and actively developing such parts into insurance products is also the role of the government.]

Climate insurance is currently operated in regions such as Jeju Island using insurance company funds and provincial government budgets.

(Photo courtesy of Oh Young-chun | Video editing: Park Chun-bae | Design: Seo Hyun-jung)