Known as the Group Micro-heat Hazard Hospitalization Care Health Insurance (GMHM) scheme, it would provide coverage to those affected by heat stroke, heat syncope, heat cramps and other heat-related illnesses.
The premiums would be fully funded by the Nan Shan Life Charity Foundation.
The FSC approved the programme with a one-year trial period on 28 May, reported Taipei Times.
The scheme is an important public-private collaboration on climate adaptation, as extreme heat directly affects public health and socioeconomic development, FSC Chairman Peng Jin-lung said.
A heat-related injury typically requires four days of hospitalisation followed by two to three days of recovery at home, resulting in about NT$10,000 ($340) in losses, Nan Shan Life Insurance chairman Yin Chung-yao said.
The company would review whether the amount is appropriate following the one-year pilot programme, he added.
In its first year, the programme would cover those aged 15 to 75, although it may later be expanded, he said.