KOHIMA, Aug 2: Chief Minister Neiphiu Rio said his government and SBI General Insurance inked an MoU on Friday for DRTPS, making Nagaland the first state in the country to implement a disaster risk management insurance solution.
Disaster Risk Transfer Parametric Insurance Solution (DRTPS) will aid in protecting the state’s critical infrastructure and reduce economic losses due to a disaster, the chief minister said.
The Memorandum of Understanding was signed for a period of three years with immediate effect.
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The signing of the MoU was held at the Chief Minister’s Office here between the officials of SBI General Insurance and the Nagaland State Disaster Management Authority (NSDMA).
“The state govt. & SBI General Insurance signed an MoU for DRTPS, making Nagaland the first Indian state to implement this disaster management insurance. A parametric multi-year risk transfer solution, it will aid in protecting the state’s critical infrastructure and reduce economic losses due to disaster,” said Rio on X, formerly Twitter.
The insurance covers the entire Nagaland, the CM said, adding that the government will pay the insurance premium and if a disaster happens, the insurer will come to the rescue for three years from 2024-2027.
“We hope that this will go smoothly and we will have the mechanism in all the districts to function properly with the help of the people as it is insuring all the citizens against flood, drought, mudslide, damage to properties and crops etc. Nagaland doesn’t have its own resources and if any disaster comes, this insurance will give us protection,” he said.
Without mentioning the premium amount, Rio said a mechanism would be worked out so that the state does not face a huge burden in paying premiums.
The NSDMA will implement the Disaster Risk Transfer Parametric Insurance Solution over three years for the state.
DRTPS is especially relevant in the context of an increase in extreme weather occurrences caused by climatic change, the NSDMA said.
The vision of the scheme is to provide financially resilient and safe livelihoods for sustainable development, it said.
It aims to establish an effective and efficient disaster risk management system in all districts of Nagaland and to facilitate community-based disaster risk management, the NSDMA added. (PTI)
