Nagaland Becomes First State to Implement Disaster Insurance

August 8, 2024

Nagaland has become the first state in India to start a disaster management insurance scheme by signing an agreement with SBI General Insurance. This new program called the Disaster Risk Transfer Parametric Insurance Solution (DRTPS), is designed to protect against natural disasters.

What is Parametric Insurance?

Parametric insurance works by giving predetermined payouts based on specific events, such as the strength of a natural disaster. This means that after a disaster, financial support is given quickly without the need for detailed damage assessments.

Objectives of the MoU

The main aim of the agreement is to protect Nagaland’s important infrastructure and reduce economic losses caused by natural calamities. The scheme will cover the whole state, helping with proactive disaster management. The Nagaland State Disaster Management Authority (NSDMA) and SBI General Insurance are working together on this, showing a joint effort to strengthen the state’s ability to handle disasters.

Significance of the Initiative

By being the first state in India to use this type of financial mechanism, Nagaland is setting an example for other states. This innovative approach is intended to improve disaster preparedness and response, ensuring better protection for its people and resources.

More About Nagaland

Nagaland is a state in northeastern India, home to 16 major tribes, each with its own unique customs. It has the world’s second-largest bamboo species, Dendrocalamus giganteus. The Hornbill Festival, held every year, celebrates the state’s cultural diversity. Kohima, the capital, was the site of a significant battle in World War II. The people of Nagaland traditionally practice shifting cultivation, known as ‘jhum.’ English is the state’s official language. Nagaland is also known for its handcrafted shawls and vibrant festivals like Moatsu and Sekrenyi.

« Previous Post Next Post »