National Disaster Management Authority Government of India

New initiatives

Disaster Relief & Risk Transfer Through Insurance


India is extremely vulnerable to natural disasters. Floods, droughts, cyclones, landslides and earthquakes are a recurrent phenomenon in India. Disaster Risks are also increasing due to development processes exposing a larger number of people and assets to climate related hazards at a pace that outstrips our ability to reduce vulnerability and develop resilience. The situation is worsened by the frequent occurrence of manmade disasters.

In this context, evolving risk transfer mechanisms, also prioritized by the Hyogo Framework for Action, become crucial. Ex ante risk financing mechanisms like insurance form a critical part of a comprehensive disaster strategy.

NDMA has taken up the issue of development of effective risk transfer mechanisms and has accordingly held number of workshops/conferences on this subject. These events have facilitated interface among key stakeholders with a view to evolve a national consensus on the subject. Following a seminar held in April 2012. NDMA and IRDA’s joint efforts led to the formulation of a concept note with concrete suggestions on the possible role of insurance. These were discussed with stakeholders in a National Seminar on Risk Transfer Mechanisms on 17th April, 2013. This seminar was one of the pre-events of the First Session of the National Platform on Disaster Risk Reduction (NPDRR) held on May 13-14th,2013 which also included a session dedicated to Risk Financing Mechanisms. This discussion paper provides a more detailed analysis explaining the above mentioned suggestions, which were largely endorsed by various stakeholders. 

Comments on the above paper are solicited from Central Government Ministries/Departments, Regulatory Bodies, State Governments, Disaster Management specialists, other agencies involved in the disaster management and Members of Civil Society who are interested in the subject. Comments may be mailed to:  This email address is being protected from spambots. You need JavaScript enabled to view it.