Sri Vijaya Puram, Oct. 21: The National Disaster Management Authority (NDMA), Government of India, New Delhi has issued directions in pursuance of the recommendations of the 16th Finance Commission, which has stressed the need for wider adoption of insurance products in accordance with global best practices and encouraged States and Union Territories to enhance insurance coverage for effective disaster risk management. In this connection, NDMA, in consultation with the Department of Financial Services, Government of India, has compiled a list of insurance products currently available to cover various disaster-related risks. The list has been prepared in coordination with the Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited. Considering the vulnerability of the Andaman and Nicobar Islands to natural hazards, including earthquakes, tsunamis, cyclones, heavy rainfall and other disaster-related events, financial preparedness is an important component of comprehensive disaster risk management. Along with awareness, preparedness, mitigation and response measures, appropriate insurance coverage can strengthen the financial resilience of individuals, communities and businesses.
The Directorate of Disaster Management, A&N Administration has urged individuals, households, shopkeepers, small and medium enterprises, large industries and other vulnerable stakeholders to explore the available insurance products and choose appropriate policies based on their specific needs, risk exposure and financial capacity. Adequate insurance protection can help minimise the financial impact of disasters and facilitate the timely recovery of damaged property, restoration of livelihoods and resumption of business activities.