Uncertainty is looming large in the tech sector, where a talented engineer is building new features for social media on Friday night, may be jobless by Monday morning. Beyond Twitter, Amazon and Meta, layoffs have hit the tech sector across the globe, leaving almost 1.5 lakh people, at more than 800 firms, without a job. Even in the media space, Disney has announced job cuts, while reports of an Indian news channel Zee Hindustan shutting down has put 300 employees at risk.
Unemployment can disrupt the future
In such chaotic times, its natural for any professional to panic and for aspirants to be concerned about their future, especially when a painful recession is on the horizon. Bills don’t stop coming when the payslips dry up, and a period of unemployment which eats into savings can disrupt plans for the future. Like the pandemic the current job cuts have also come unannounced, and just like any emergency, insurance can ensure protection for those who get laid off.
So how does it work?
Yes, there is something called a job loss insurance, which covers expenses and bill payments, for people who lose their source of income, till they find a new job.
The scheme usually covers employees of companies which have closed down, those hit by job cuts, or people eligible through other forms of coverage.
Income protection plans offered by the likes of ICICI, HDFC and Royal Sundaram help people pay EMIs, even if their regular income is halted by job loss.
What are the options?
This can be availed of only by people who have lost jobs due to illness or have been laid off, but isn’t for those who are fired for poor performance.
The policies by ICICI, HDFC and Royal Sundaram cover only salaried people and are available as an add-on to existing schemes.
Policy Bazaar had also introduced a policy to cover joblessness, which offers protection to both salaried and self-employed people.
Does the state have you covered?
As for state-backed policies, the Rajiv Gandhi Shramik Kalyan Yojana launched in 2005, offers 50 per cent of the wage as allowance for maximum two years, to people insured for more than three years.
Another one of the Atal Beemit Vyakti Kalyan Yojana, where insured people get cash for three months once in their lifetime, if they are unemployed.
As grave times approach and Indian tech startups are showing glimpses of the layoff season in the US, a joblessness cover as part of insurance policies is something every young professional must cover.
