LayOff Insurance
Globally, companies have laid off more than 3 lakh employees in the last year. (Employee wealth loss - $ 5 billion)
If you were to protect yourself, how much % of CTC would you pay as a premium to get a full salary for up to 6 months?
Doesn't work in India coz Indian companies don't lay you off, you resign.
Even if the media calls is mass layoff, by contract law it's resignation.
Forced resignation is also resignation.
We need a model where the resignations & layoffs help those who are affected.
Similar to layoffs, People quit within one year of joining a company which incurs huge costs for companies (Apprx. 25 Billion dollars).
I plan to build a model where forced resignation will be a part of layoff..and In case, someone quits within a year of joining, the company will get some sort of training & recruitment fees...
Can explain detail if needed...
I did read about the - Amazon’s attrition costs $8 billion annually
https://www.engadget.com/amazon-attrition-leadership-ctsmd-201800110-201800100.html
Any company offering similar product in India ?
There is a startup based out of Bangalore called Jobsurance but I have serious doubts on their offering as I don't see them regulated through IRDAI & they have a very shady employee list on LinkedIn..
Jobsurance offers this product. I am using it and I have received an approved policy document from iffco tokio which is the insurer in this case. I have been laid off from a tech company and my claim is under process. Expecting the payout soon. Will update you guys when I get the money.
1% of CTC has got to be a joke. Just checking on the ICICI Prudential website, I can get a 4.5cr life cover for <1% of my CTC yearly premium until the age of 65.
No way I'm paying that much for job insurance. If such a product exists, it'll be a goldmine for the underwriters. Negligible risk on their end.
Insurance premiums are based on the number of people in the pool. As the number grows, the premium comes down, while the pool for life cover is much bigger compared to the total number of people working in the private sector in India.
While you might think 1% is greater, building a viable product might require pushing for 2-3% as well because life cover will be used once at max but layoffs are a cycle, and can happen multiple times in an individual's life.
Off topic but I like your username: Sir Lewis Hamilton
Seen this https://jobsurance.in/
