Nagaland Chief Secretary J Alam signed a Memorandum of Understanding (MoU) for ‘Disaster Risk Transfer Parametric Insurance Solutions (DRTPS)’ today on behalf of the Nagaland Government with SBI General Insurance Company Limited in the presence of Chief Minister Neiphiu Rio, at his office chamber here in Secretariat, Kohima.
The Nagaland State Disaster Management Authority (NSDMA) is implementing DRTPS over three years for the state of Nagaland with the vision for a financial resilience and safe livelihoods for sustainable development. The multi-year DRTPS is one unique risk transfer solution ever implemented for the first time by the Government of Nagaland. The good practices and knowledge gain from this risk transfer solution/Scheme will serve as a torch bearer in the risk transfer sector for Indian stares.
It may be mentioned that NSDMA has implemented a Disaster Risk Transfer Parametric Insurance as a key financial tool for funding disasters since 2020- the first and the only state in the country to implement such programme with support from InsuResilience Solution Fund (ISF) from Frankfurt School of Financial Management (funded by KFW). These few years of implementation has provided experimental learning and knowledge base to design future parametric insurance solutions which many Indian states including Ministry of Home Affairs is expected to replicate.
DRTPS specifically targets to establish an effective and efficient disaster risk management systems in Nagaland in all district at all levels. It aims to facilitate community-based disaster risk management for resilient community and to build effective and sustainable risk transfer initiative among the community; to create a platform for public private partnership in risk transfer initiative in the event of major disaster.
Download Nagaland Tribune app on Google Play
The Disaster Risk Transfer Parametric Insurance Solutions is to ensure that the population and critical infrastructure are financially protected in the event of a disaster and to increase the ability of the state government to respond more quickly and efficiently to disasters and also to Build Back Better in the event of major disaster.
The successful implementation of DRTPS program of the State government is expected to usher a new model of Parametric Insurance for Disaster Risk Transfer and also a paradigm shift in the effort to Build Back Better in the event of major disaster.
