Nagaland state disaster relief force personnel at work during a flooding incident in Dimapur district. (Photo Courtesy: https://nsdma.nagaland.gov.in/sdrf)
Morung Express News
Dimapur | March 29
Nagaland became the first Indian State to opt for insurance to increase the financial capacities of its State Disaster Response Fund earlier in the month of March.
On March 16, the InsuResilience Solutions Fund (ISF), managed by Frankfurt School of Finance and Management and funded by KfW Development Bank, announced the signing of a grant agreement supporting the development of an insurance scheme for Nagaland’s State Disaster Response Mitigation Fund (SDRMF).
The partnership, co-funded by the ISF kicks off a public-private partnership project strengthening the state’s climate resilience by enhancing its insurance protection against natural catastrophes, according to the Frankfurt School of Finance and Management website.
It stated that the project will be implemented by a partnership consisting of the Nagaland State Disaster Management Authority (NSDMA), the local insurance company Tata AIG General Insurance Company Limited, with Swiss Re as reinsurance partner and the Swiss consultancy firm Faber Consulting as project coordinator. ISF provides grant based co-funding for the implementation phase.
It further stated that Nagaland is exposed to high levels of humidity and heavy rains in the monsoon months which result in heavy storms, flash floods, heavy rain and landslides and causes severe damage to public and private properties. Additionally Nagaland lies in a very high seismic zone with twelve major earthquakes occurring in the region in the last 100 years. The ISF also noted that at least 70% of the population is considered as poor and vulnerable and therefore are over-proportionately exposed to these extreme events.
Though the SDRMF is the primary fund available for disaster response measures of Indian States along with complementary funding provided by the National Disaster Response Fund (NDRF), the ISF stated that with both funds being underfunded, Nagaland´s State Government is currently lacking the necessary resources for relief measures and the minimum compensation to victims of these disasters.
The ISF stated that the NSDMA partnered with Tata AIG and Swiss Re to increase the state’s protection against natural catastrophes and to pilot a first insurance protection for the monsoon season in 2020. Additionally, to expand and enhance the existing excess rainfall cover and develop a complementary earthquake cover, the ISF is now co-funding the innovative insurance programme in order to strengthen Nagaland’s resilience to natural disasters, according to the website.
Quoting Officer on Special Duty at NSDMA Johnny Ruangmei, the website stated, “With the start of the project we will enhance the existing State and National Disaster Risk Funds by developing and implementing a parametric insurance solution for the monsoon season and earthquakes. This allows us to provide more meaningful and faster compensation in case of a disaster. Investment in risk transfer is essential to foster Nagaland’s resilience and sustainable development.”
