Developed countries have traditional unemployment insurance schemes. Implementing the similar scheme in developing countries like India is quite a challenging task. It is not feasible as there is a difficulty of confirming the exact cause for the unemployment in the unorganised sectors.
For example, if an employee has to contribute continuously for 3 years towards the unemployment insurance, the workers from unorganised sector could find it difficult to make regular payment due to the uncertainty of the job. Factors such as this makes unemployment insurance difficult to be implemented in India.
Additional Reading: What is non-life insurance