In a historic move, Nagaland has successfully processed its first claim under the Disaster Risk Transfer Parametric Insurance Solution (DRTPS). The Nagaland State Disaster Management Authority (NSDMA), Home Department signed a multitier DRTPS agreement with SBI General Insurance in 2024, introducing an innovative risk transfer solution to enhance disaster resilience in the state.
According to a press release issued by the NSDMA, the settlement of the Cover 1 Claim amounts to Rs One Crore Six Lakh fifty thousand which will be disbursed to the beneficiaries affected by the Monsoon 2024 through the Decentralised Relief Payment System (DRTPS)- a digital payment gateway developed by NSDMA directly to the accounts of the beneficiaries.
“Today, NSDMA marked a significant milestone with the settlement of the Cover 1 Claim (Monsoon Period) under the DRTPS for 2024-2025. This parametric disaster insurance system stands as a testament to the collective strength of commitment to disaster preparedness and resilience,” stated the NSDMA.
The ceremony was graced by Advisor NSDMA & NRE Shri. Z. Nyusietho Nyuthe as a special guest with the presence of the Commissioner & Secretary and officers and staff of NSDMA, and representatives from SBI General Insurance – Piyush Kumar Singh, Sandeep Mukherjee, Subhankar Mazumder and Luntsuba. A formal declaration of claim settlement was made. In his keynote address, the Advisor thanked the leadership of the Chief Minister and Chairman NSDMA for his far sighted and future-looking project that has been implemented under his “par excellence leadership”.
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He also stated that amidst the increase in climate variabilities, a Parametric Disaster Risk Insurance Solution is one of the parts to achieve sustainable development.
“The story of Nagaland venturing into Disaster Risk Transfer Parametric Insurance Solution (DRTPS) is the spark in the history of Parametric Disaster risk transfer insurance in the country and around the globe. This solution is being studied by many insurance industries in the development of risk financing,” mentioned the press release.
DRTPS of Nagaland has positively impacted the risk financing mechanism in India with a special provision that will be incorporated in the 16th Finance Commission. “The claim settlement of Cover 1 under the DRTPS is a golden letter day in the Parametric Insurance history. This innovative Nagaland Disaster Risk Transfer Parametric Insurance Solution will be referred to by many scholars in the field of Insurance in the days to come,” added the NSDMA.
