NEW DELHI: Expressing concerns over the increasing frequency and intensity of disasters, Principal Secretary to Prime Minister, P.K. Mishra, on Saturday emphasised the need to expand affordable disaster risk insurance to vulnerable populations.
Mishra delivered the keynote address at the National Disaster Management Authority’s (NDMA) workshop on “Why Disaster Risk Insurance Matters – Key Concepts and Benefits” in New Delhi.
During his speech, he highlighted several critical issues regarding disaster risk insurance, including the challenge of providing underserved populations with affordable insurance and ensuring a simplified claims process.
He underscored the importance of public-private partnerships in expanding the reach of insurance products, which are essential for ensuring the fiscal sustainability of such initiatives. Mishra’s address was framed around Prime Minister Narendra Modi’s ten-point agenda for Disaster Risk Reduction (DRR), introduced in 2016.
Discussing the government's role in supporting disaster insurance expansion, he stated, "The government can either facilitate the private sector's efforts or take a direct role, such as providing insurance for specific sectors."
He further highlighted the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Ayushman Bharat as examples of successful risk protection initiatives backed by the government.
The PMFBY provides affordable crop insurance to farmers, protecting them from income losses due to natural disasters. Ayushman Bharat, on the other hand, offers health insurance to economically disadvantaged individuals, helping to mitigate medical expenses.
Mishra suggested the introduction of large-scale disaster risk insurance tailored to various stakeholders, including households, businesses, and government agencies at all levels. He noted that such programmes could help better prepare India to cope with the financial consequences of future disasters.
The NDMA workshop brought together senior officials, including Home Secretary Govind Mohan, NDMA member Rajendra Singh, NDMA advisor Safi A Rizvi, and professionals from the insurance sector, to discuss strategies for advancing disaster risk insurance in the country.