P K Mishra Highlights India’s Efforts in Disaster Risk Insurance at NDMA Workshop
New Delhi, India – P K Mishra, Principal Secretary to the Prime Minister, spoke at the National Disaster Management Authority’s (NDMA) Workshop on ‘Why Disaster Risk Insurance Matters – Key Concepts and Benefits’ in Delhi. He discussed India’s progress in insurance products, bonds, and technology for assessing damage and loss.
Innovative Insurance Solutions
Mishra emphasized India’s potential to innovate in disaster risk insurance, aligning with global trends for more resilient and inclusive solutions. He expressed concern over the increasing frequency and intensity of disasters worldwide, including in India, and advocated for a strategic vision to expand insurance coverage across various sectors.
Key Issues Addressed
Mishra focused on two critical issues:
- Reaching segments of the population who find it difficult to purchase insurance by making it more affordable, increasing awareness, and simplifying the claims process.
- The role of the government in supporting insurance expansion, either as a catalyst or by purchasing insurance for certain sectors, and creating public-private partnerships to improve outreach.
He highlighted the need for robust actuarial expertise and a well-defined legal framework to support these efforts.
Government Initiatives
Mishra elaborated on Prime Minister Modi’s ten-point agenda on Disaster Risk Reduction (DRR) from 2016 and mentioned two significant government-backed insurance programs:
- Pradhan Mantri Fasal Bima Yojana (PMFBY): This program offers affordable crop insurance to farmers, protecting their income from natural disasters and enhancing resilience in rural areas.
- Ayushman Bharat: This health insurance program provides coverage to economically disadvantaged individuals, ensuring access to quality healthcare and reducing out-of-pocket expenses.
Both initiatives aim to promote social equity, financial inclusion, and household-level risk management.
Global and Domestic Outreach
Mishra noted that the development of diversified insurance products for disaster risks is gaining momentum globally. He mentioned that NDMA and the Department of Financial Services (DoFS) are engaging with global and domestic institutions to build a robust disaster insurance market in India.
In conclusion, Mishra called for diverse insurance solutions with sustainability at their core, providing affordable insurance to a growing group while maintaining a viable risk pool.
Doubts Revealed
P K Mishra -: P K Mishra is an important person who works closely with the Prime Minister of India. He helps in making big decisions for the country.
NDMA -: NDMA stands for National Disaster Management Authority. It is a group in India that helps plan and manage responses to disasters like floods and earthquakes.
Disaster Risk Insurance -: Disaster Risk Insurance is a type of insurance that helps people and businesses recover money if they are affected by natural disasters like floods or earthquakes.
Pradhan Mantri Fasal Bima Yojana -: Pradhan Mantri Fasal Bima Yojana is a government program in India that provides insurance to farmers. It helps them get money if their crops are damaged by bad weather.
Ayushman Bharat -: Ayushman Bharat is a health program in India that helps poor people get medical treatment without paying a lot of money. It is like health insurance for those who can’t afford it.
Global and Domestic Outreach -: Global and Domestic Outreach means working with people and organizations both inside and outside of India. This helps in sharing ideas and getting support to make disaster insurance better.
