Nagaland has successfully processed its first claim (monsoon period) under the Disaster Risk Transfer Parametric Insurance Solution (DRTPS) for 2024-2025.
Nagaland State Disaster Management Authority (NSDMA), Home Department signed a multitier DRTPS agreement with SBI General Insurance in 2024, introducing an innovative risk transfer solution to enhance disaster resilience in the state.
In a press release, commissioner & secretary Lhouchalie Viya said NSDMA marked a significant milestone with the settlement of the cover 1 claim (monsoon period) under the DRTPS for 2024-2025.
“This parametric disaster insurance system stands as a testament to the collective strength of commitment to disaster preparedness and resilience,” Viya said.
The ceremony was graced by advisor NSDMA & NRE Z. Nyusietho Nyuthe as a special guest in the presence of the commissioner & secretary and officers and staff of Nagaland State Disaster Management Authority, and representatives from SBI General Insurance – Piyush Kumar Singh, Sandeep Mukherjee, Subhankar Mazumder and Luntsuba.
A formal declaration of claim settlement was made. In his keynote address, advisor thanked the leadership of chief minister and chairman Nagaland State Disaster Management Authority for his far sighted and future-looking project that has been implemented under his leadership.
He stated that amidst the increase in climate variabilities, a parametric disaster risk insurance solution was one of the parts to achieve sustainable development.
NSDMA said the story of Nagaland venturing into DRTPS was the spark in the history of Parametric Disaster risk transfer insurance in the country and around the globe. It said this solution was being studied by many insurance industries in the development of risk financing.
DRTPS of Nagaland has positively impacted the risk financing mechanism in India with a special provision that will be incorporated in the 16th Finance Commission, NSDMA said.
It pointed out that the claim settlement of Cover 1 under the DRTPS was “a golden letter day” in the Parametric Insurance history.
NSDMA also said Nagaland was one of the first dots in the country and in the world. It stated that settlement of the Cover 1 Claim amounts to Rs. one crore six lakh fifty thousand, which would be disbursed to the beneficiaries affected by the Monsoon 2024 through DRTPS a digital payment gateway developed by NSDMA directly to the accounts of the beneficiaries.