New Delhi, Oct. 6 -- The Indian government has initiated early-stage talks with local insurers to design a nationwide climate-linked insurance programme, aiming to simplify the financial relief process following extreme weather events such as floods and heatwaves.

The proposed scheme is centred on a parametric insurance model, in which payouts can be made very quickly. The move is also expected to help the central government manage its financial burdens, as insurers would be taking on more of the risk which is currently covered by disaster relief funds, Reuters reported.

India is among the nations most prone to extreme weather events. If the proposed insurance scheme is approved, then it could make India one of the first major economies...