India Needs National Disaster Pool To Cover Natural Disaster Risks (Report)

With the increase in the number of incidents and the severity of natural disasters from year to year, a report called for the establishment of a national disaster pool, as the country is one of the most vulnerable countries. disasters in the world.

India ranks third, after the United States and China, in the number of natural disasters since 1900, with 756 natural disasters such as landslides, storms, earthquakes, floods, droughts, etc. Between 1900 and 2000, there were 402 disasters and 354 in 2001-21.

Since 2001, a total of 100 million people have been affected and nearly 83,000 people have lost their lives as a result of these disasters. If the losses are adjusted with current prices, the losses amount to one crore of Rs 13 lakh or 6% of GDP, the State Bank of India (SBI) said in a note on Friday.

Between 1991 and 2021, only around 8% of total losses are covered in the country, so there is around 92% of the protection gap during this period.

Early intervention is needed to close the protection gap, which exists in all lines of insurance and the only way out is a public-private solution by creating a national disaster pool to cover the risks of natural disasters, Soumya Kanti Ghosh , the group’s chief economic adviser to SBI said in the note.

Total economic losses from the 2020 floods amounted to $ 7.5 billion or 52,500 crore rupees, but the insurance available was only 11%, he said in the report, adding that if the government had insured it, then the premium for the sum insured of 60,000 rupees. crore would have been only Rs 13,000 to 15,000 crore.

Besides human losses, there are enormous economic losses due to natural disasters.

“Since 1900, we have suffered an economic loss of $ 144 billion (when loss is reported) with the largest losses from flooding ($ 86.8 billion) followed by storms ($ 44.7 billion). If these losses are adjusted with current prices, the losses amount to around 87 billion dollars or 13 million rupees, ”he said.

In addition, there is a huge gap in loss reporting (loss data for only 193 events is available for the country) and there are also issues in existing estimation methodologies, according to the report.

In recent times, the intensity and frequency of natural disasters, especially cyclones, have also increased several times. For example, the frequency of cyclones on the west coast (Maharashtra, Gujrat) is increasing, which had not been observed in the past.

Global economic losses from natural and man-made disasters are estimated to amount to $ 202 billion (0.24% of global GDP) in 2020, up from $ 150 billion in 2019.

The United States has been hit the hardest, with large swathes of its east coast hit by hurricanes, wildfires in the west and the Midwest hit by a record number of convection storms.

Australia has also suffered from unprecedented drought, wildfires and storms. Asia has suffered fatal and catastrophic flooding from monsoon rains. There has also been an increase in natural disasters and the emergence of other risks such as the risk of climate change.

The global disaster protection deficit was $ 113 billion in 2020, down from $ 87 billion in 2019, but down from the past 10-year average of $ 143 billion, according to the report.

Among all countries, France has had a national insurance scheme since 1989. Since 2016, insured losses have exceeded 550 million euros each year, with an average annual loss of 810 million euros, against a loss. annual average of 310 million euros in 2000-2015.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)