project on disaster management

KARVY STOCK BROKING LTD.

A report on An analysis of POLICIES AND SCHEMES OF

INSURANCE FOR DISASTER MANAGEMENT

By

Joydeep mondal

[09bsddu0033]

Karvy stock broking ltd.


A report on

An analysis of POLICIES AND SCHEMES

OF INSURANCE FOR DISASTER

MANAGEMENT

By

Joydeep mondal

[09bsddu0033]

Company guide faculty guide

Mr. abhishek mishra prof. vinesh jain

[area head- ksbl] [faculty member-ibs dehradun]


Authorization

This summer internship program has been conducted for partial fulfillment of MBA-program at

IBS-Dehradun. Summer Internship Program also included a project work on –“an analysis of

policies and schemes of insurance for disaster management.”

Karvy Stock Broking Limited-Dehradun and IBS-Dehradun hereby authorize Mr. Joydeep

Mondal to conduct his research dissertation under Mr. Abhishek Mishra, Area head, Karvy

Stock Broking Ltd.Dehradun and Prof. Vinesh Jain, Faculty member starting from date: 15th

February, 2010 to 14th May, 2010.

A complete report of research findings will have to be provided to Karvy Stock Broking Limited-

Dehradun.

Mr. Abhishek Mishra Prof. Vinesh Jain

[Area head—Karvy stock broking ltd.] [Faculty member—IBS-Dehradun]


Certificate by the organization::


ACKNOWLEDGEMENT

Sometimes words fall short to show gratitude, the same happened with me during this project.

The immense help and support received from Karvy stock broking limited overwhelmed me

during the project.

As I sum up draft of my study, I appreciatively reminisce the contribution of all those people

without whose support and help, this study would have never taken its present form.

My sincere gratitude to Mr.Abhishek Mishra (area head , Dehradun, Karvy Stock Broking Ltd.)

and Dr. Sanjeev Malavia (Placement Coordinator, IBS dehradun), for providing me with an

opportunity to work with karvy stock broking limited.

I am highly indebted to Mr. Pankaj Dwivedi, Senior Officer (Insurance) karvy stock broking ltd.,

Dehradun , who has provided me with the necessary information and his valuable suggestion

and comments on bringing out this report in the best possible way.

I also thank Prof. Vinesh Jain, faculty guide, IBS Dehradun who has sincerely supported me with

the valuable insights into the completion of this project.

I am grateful to Mr. Gagan Shukla and all of the members of karvy stock broking Ltd. Of

Dehradun, who have helped me in the successful completion of this project.

I also very thankful to my friends who help me in completion of the project. I am thankful to

that power that always inspires me to take right step in the journey of success of my life.


Table of contents:: Contents page no.

Executive summary 7

Objectives 8

Introduction 8

Company profile 9

Company overview 9

Disaster 12

Classification of disaster 12

Natural disaster 12

Man made disaster 13

Hazard vulnerability in INDIA 13

Administrative structure for disaster management in UTTARANCHAL 16

National disaster management framework 21

Disaster management act 2005 25

Insurance 28

Basic insurance terminologies 28

General insurance 29

Need for insurance in disaster 30

Bodies that regulate insurance sector 32

Major challenges of insurance sector 34

Future prospects of insurance sector 35

List of general insurers 36

Market share of different companies in general insurance 37

Methodology 38

Observation and findings 39

Conclusion 43

Annexure-I Questionnaire 44

Abbreviations 46

References 46


Executive summary

With the liberalization and entry of private players in insurance field, the Indian insurance

sector has started showing signs of significant change. Within a short span of time, private

insurance has acquired a great market share of insurance market. The study will help to find out

the awareness of disaster insurance of the people of Dehradun and accessibility of disaster

insurance in Dehradun. It also measures the perception of the people of Dehradun about

disaster insurance. What they think about disaster insurance, is it really effective to recover the

damages caused by disaster. How many of them have disaster insurance coverage, as we know

that Uttaranchal state is very disaster prone. Apart from that the report also considers the

current state of insurance market. Presently how many companies are in general insurance

business, and also the market share of different companies. It also contains the administrative

structure & their preparedness for disaster management in Uttaranchal and national disaster

management framework of India.


Objectives::

Project will help to make people more aware about various products of different insurance

companies. This study will help to know the market situation of disaster insurance in Dehradun.

The main objectives of the studies are as follows::

The awareness of disaster insurance of the people of dehradun and accessibility

of disaster insurance in dehradun.

The potential role of disaster insurance for disaster risk reduction.

To study the fruitfulness of disaster management schemes to recovery from

disaster.

To study the administrative structure & their preparedness for disaster

management in uttaranchal.

To study the activities; and various policies and schemes of disaster

management provided by government of uttaranchal.

To study national disaster management framework.

Introduction::

A contract between two parties is known as Insurance. Shifting or transferring of risk of loss or

damage, from owners and thereby sharing of losses by all the members of the group are main

uniqueness. Thus a contract of insurance is a contract by which one party undertakes to make good

the loss of another, in consideration of a sum of money, on the happening of a specified event. For

example fire, accident or death.

Since liberalization in 2000, the Indian insurance sector has become a buyer’s market. Owing to

liberalization customer has the choice to select from variety of products, services and service

providers. In the year 2005 karvy established a new division karvy insurance broking ltd. Karvy

insurance broking ltd. is working with most of the insurance company’s products. They can reach

every customer whatever customer needs.


Company profile::

Company overview::

Karvy was established as karvy and company by five chartered accountants during the year 1979-80,

and then its work was confined to audit and taxation only. Later on it diversified into financial and

accounting services during the year 1981-82 with a capital of rs.150000. it achieved its first

milestone after its first investment in technology. Karvy became a known name during the year

1985-86 when it forayed into capital market as registrar.

Evolution of KARVY::

It is well said that success is a journey not a destination and we can see it being proved by karvy.

Under this section we will see that how this “karvy and company” of 1980 became “karvy” of 2008.

Karvy blossomed with the setting up of its first branch at Mumbai during the year 1987-88. The

turning point came in the year 1989 when it decided to enter into one of the not only emerging

rather potential field too i.e; stock broking. It added the feather of stock broking into its cap. At the

same time it became the member of Hyderabad Stock Exchange through associate firm karvy

securities ltd and then karvy never looked back……..it went on adding services one after another, it

entered into retail stock broking in the year 1990. Karvy investor service centers were set up in the

year 1992. Karvy which already enjoyed a wide network through its investor service centers, entered

into financial product distribution services in the year 1993. One year more and karvy was now

dealing into mutual fund services too in the year 1994 but it didn’t stopped there, it stepped into

corporate finance and investment banking in the year 1995.

Karvy’s strategy has always been being the first entrant in the market. Karvy again hit the limelight

by becoming the first registrar in the country to be awarded ISO 9002 in the year 1997. Then it

stepped into the other most happening sector i.e; IT enabled services by establishing its own BPO

units and at a gap of just 1 year it took the path of e-Business through its website www.karvy.com .

Then it entered into insurance services in the year 2001 with the launch of its retail arm “karvy- the

finapolis: your personal finance advisor”. Then in the year 2002 it launched its PCG(Private Client

Group) which looks after its High Networth Individuals .and maintain their portfolio and provides

them with other financial services. In the year 2003, it commenced secondary debt and WDM

trading.

It was a decade which saw many Indian companies going global…..so why the largest financial

http://www.karvy.com/


service provider of India should lag behind? Hence, karvy launched “karvy global services limited”

after entering into a joint venture with Computershare, Australia in the year 2004.the year 2004 also

saw karvy entering into commodities marketing through karvy comtrade.

Year 2005 saw karvy establishing a separate branch for its insurance services under the head “ karvy

insurance broking ltd” and in the same year, after being impressed with the rapid growth of karvy

stock broking limited, PCG group of Hong Kong acquired 25% stake at KSBL. In the year 2006, karvy

entered into one of the hottest sector of present time i.e real estate through Karvy realty& services

(India) ltd. hence , we can see now karvy being established as the lagest financial service provider of

the country.

Reason behind the success of karvy::

karvy achieved success by working mainly on eight basic points; these are trust, integrity,

dedication, commitment, enterprise, hard work and team play, learning and innovation, empathy

and humility.

Mission statement::

“Our mission is to be a leading and preferred service provider to our customers, and we aim to

achieve this leadership position by building an innovative, enterprising , and technology driven

organization which will set the highest standards of service and business ethics.”

Now karvy group consists of 10 highly renowned entities

which are as follow::

: The first securities registry to receive ISO 9002 certification in India. Registered

with SEBI as Category I Registrar, is Number 1 Registrar in the Country. The award of being ‘Most

Admired’ Registrar is one among many of the acknowledgements that Karvy received for customer

friendly and competent services.

: karvy stock broking ltd. Consists of five units namely stock broking servics,

depository participant, advisory services, distribution of financial products, advisory services and

private client goups.


:: Karvy Financial Services Ltd. is a wholly owned subsidiary of Karvy Stock

Broking Ltd. Karvy Stock Broking Ltd a member of the National Stock Exchange of India and the

Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With over 6 Lac active

accounts, it ranks among the top 5 Depositary Participant in India, registered with NSDL and CDSL.

: It is a SEBI registered Merchant Banker has emerged as a leading Investment

Banking entity in the country with over a decade of experience. KISL has built its reputation by

capitalizing on its qualified professionals, who have successfully executed a large number of complex

and unique transactions

: karvy insurance broking ltd is also a part of karvy stock broking ltd. At Karvy

Insurance Broking Limited both life and non-life insurance products are provided to retail

individuals, high net-worth clients and corporates.

: The company provides investment, advisory and brokerage services in Indian

Commodities Markets. And most importantly, it offer a wide reach through our branch network of

over 225 branches located across 180 cities.

: Karvy Global is a leading business and knowledge process outsourcing

Services Company offering creative business solutions to clients globally. It operates in banking and

financial services, inurance, healthcare and pharmaceuticals, media , telecom and technology. It has

its sales and business development office in New York, USA and the offshore global delivery center

in Hyderabad, India

: Karvy Realty (India) Limited is engaged in the business of real estate and

property services offering:

Buying/ selling/ renting of properties

Identifying valuable investments opportunities in the real estate sector

Facilitating financial support for real estate and investments in properties

Real estate portfolio advisory services

:: Karvy Data Management Services is the domestic BPO arm of the Karvy

Group and services corporate across various industry verticals and business horizons.

http://kdms.karvy.com/index.html


KDMS is committed to provide best in class, value driven business solutions to its clients by way of

its innovative techniques and technology framework.

: it is a joint venture between Computershare, Australia and KarvyConsultants

Limited, India in the registry management services industry.

DISASTER::

WHAT IS DISASTER::

Disaster is the tragedy of a natural or human-made hazard (a hazard is a situation which poses a

level of threat to life, health, property, or environment) that negatively affects society or

environment.

CLASSIFICATION::

Disaster can bi classified into two categories viz. NATURAL DISASTER and MAN–MADE DISASTER.

NATURAL DISASTER::

A natural disaster is a consequence when a natural hazard (e.g., volcanic eruption or earthquake)

affects humans. Human vulnerability, caused by the lack of appropriate emergency management,

leads to financial, environmental, or human impact.

VARIOUS TYPES OF NATURAL DISASTER::

1. EARTHQUAKE:: An earthquake is the result of a sudden release of energy in the Earth's crust

that creates seismic waves.

2. AVALANCHE:: An avalanche is a rapid flow of snow down a slope, from either natural triggers

or human activity.

3. FLASHFLOOD:: A flash flood is a rapid flooding of geomorphic low-lying areas - washes,

rivers, dry lakes and basins. It may be caused by heavy rain associated with a storm,

hurricane, or tropical storm or meltwater from ice or snow flowing over icesheets or

snowfields.

4. FLOODS:: A flood is an overflow or accumulation of an expanse of water that submerges

land.

5. LANDSLIDES:: A landslide or landslip is a geological phenomenon which includes a wide

http://en.wikipedia.org/wiki/Natural_hazard

http://en.wikipedia.org/wiki/Human-made_hazard

http://en.wikipedia.org/wiki/Hazard

http://en.wikipedia.org/wiki/Environment_(biophysical)

http://en.wikipedia.org/wiki/Hazard

http://en.wikipedia.org/wiki/Volcanic_eruption

http://en.wikipedia.org/wiki/Earthquake

http://en.wikipedia.org/wiki/Vulnerability

http://en.wikipedia.org/wiki/Emergency_management

http://en.wikipedia.org/wiki/Earth

http://en.wikipedia.org/wiki/Crust_(geology)

http://en.wikipedia.org/wiki/Seismic_wave

http://en.wikipedia.org/wiki/Snow

http://en.wikipedia.org/wiki/Flood

http://en.wikipedia.org/wiki/River

http://en.wikipedia.org/wiki/Dry_lake

http://en.wikipedia.org/wiki/Depression_(geology)

http://en.wikipedia.org/wiki/Rain

http://en.wikipedia.org/wiki/Storm

http://en.wikipedia.org/wiki/Hurricane

http://en.wikipedia.org/wiki/Tropical_storm

http://en.wikipedia.org/wiki/List_of_geological_phenomena


range of ground movement, such as rock falls, deep failure of slopes and shallow debris

flows, which can occur in offshore, coastal and onshore environments.

6. CYCLONES:: A cyclone is an area of closed, circular fluid motion rotating in the same

direction as the Earth

7. DROUGHT:: A drought is an extended period of months or years when a region notes a

deficiency in its water supply. Generally, this occurs when a region receives consistently

below average precipitation

MAN MADE DISASTER::

Disasters caused by human action, negligence, error, or involving the failure of a system are called

man-made disasters.

Man-made disasters are in turn categorized as technological or sociological.

Technological disasters are the results of failure of technology, such as engineering failures,

transport disasters.

Sociological disasters have a strong human motive, such as criminal acts, stampedes, riots and war.

VARIOUS MAN –MADE DISASTER::

1. STAMPADE:: A stampede is an act of mass impulse among herd animals or a crowd of people

in which the herd (or crowd) collectively begins running with no clear direction or purpose.

2. Road accidents.

3. Rail accidents.

4. Boat accidents.

5. Building and bridge collapse.

6. Bomb explosions.

Hazard vulnerability in india::

54% of land vulnerable to earthquakes.

8% of land vulnerable to cyclones.

5% of land vulnerable to floods.

More than 1 million houses damaged annually , plus human, social, and other losses.

http://en.wikipedia.org/wiki/Earth's_rotation

http://en.wikipedia.org/wiki/Precipitation_(meteorology)

http://en.wikipedia.org/wiki/Herd_animal


EARTHQUAKES::

12% land is liable to severe earthquakes [intensity MSK(Medvedev-Sponheuer-Karnik) IX or more]

18% land is liable to MSK VIII.

25% land is liable to MSK VII.

Biggest quakes in :: Andamans , Kuchchh , Himachal, Kashmir, North Bihar and the North East.

WIND AND CYCLONES::

1981-1990 :: 262 cyclones[92 severe] in a 50 km wide strip of the east coast.

Less severe cyclonic activity on west coast[ 33 cyclones in the same period].

In 19 severe cyclonic storms , death toll> 10000 lives.

In 21 cyclones in Bay of Bengal 1.25 million lives have been lost.

FLOODS::

Floods in the Indo-Gangetic-Bramhaputra plains are an annual feature.

On an average , a few hundred lives are lost.

Millions are rendered homeless .

Lakhs of hectares of crops are damaged every year.

Increasing visibility and impacts of disaster::

Natural disasters are increasingly making headline news, due to the impact of modern

communications and connectivity, and the proliferation of TV and news media.

There is hardly any part of the globe, whether Asia, Africa, Oceania or elsewhere which is really free

from natural disaster of one kind or the other. Painful tales of what they mean are told to us either

by the kith and kin of the dead, or by the lucky survivors of the natural disasters they have

personally gone through. To say that these disasters take heavy toll of life and property or derail

national economics, is an understatement. In some cases, they wipe out the future of generations,

still unborn.


The past decade has witnessed frequent natural hazards all over the world. At the beginning of the

1990s, the events that hit the headlines were mainly earthquakes and windstorms. Some of the

examples are the winter storms in Europe in 1990, Typhoon Mireille in Japan in 1991, Hurricane

Andrew in Florida in 1992, the earthquakes in California in 1994 and Kobe in 1995; 1998 was the

year of largest number of events and highest damages cost and witnessed floods as most notable

events. Severe floods as the aftermath of storm surges in the wake of tropical cyclones were also

noticed as in the case of Gujarat, in June 1998, and Central America at the end of October. The

recent super cyclone in Orissa (1999), a catastrophe claiming more than 10,000 lives and recently

the earthquake of Gujarat in the new millennium are the most tragic events that have shaken up the

world. The analysis and trends of these natural catastrophes world over indicates:

During last ten years the number of great natural disasters have increased three times and

economic losses due to these disasters have increased nine times.

Number of loss events worldwide in 1998 alone (one of the years with largest number of

catastrophes in the decade) indicate that 50 per cent of the events are earthquakes and

windstorms and these have been higher in the Americas (255) compared to 202 in Asia.

While the occurrence of number of events is highest in the Americas, number of deaths

occurring due to these events have been higher in Asia, i.e. 34,303 as compared to 14,995 in

the Americas.

Economic losses due to earthquakes and windstorms is highest in the Americas while these

losses are highest due to floods in Asia.

These trends (Sigma, 2001) world over indicate that in spite of technological advancements in

prediction techniques and warning systems:

There has been an increase in the occurrence of events as well as cost of damage;

Economic losses are more in developed countries than developing countries; and

Number of deaths is much more in Asia than America.

The main reasons for such dramatic increases are:

The concentration of population is constantly growing in a numbe r of large cities, which are

often located in high-risk zones;

Greater susceptibility of modern industrial societies to catastrophes; and

Accelerating deterioration of natural environmental conditions.


Administrative Structure for Disaster

Management in Uttaranchal:: Shortly, after the carving out of state of Uttaranchal, a new administrative structure for disaster

management has been put in place, The state became the first in the country to have ministry of

Disaster Management. The structure of disaster management system is as follows::

Institutional Arrangements at District Level::

48

DMMC District Magistrate/

District Disaster

Manager

District Control Room

Desk Offices

And

Officers in Charge

Site Operation

centre

Site Manager

Police

Civil Hospital

PWD

Corporation

RTO

DSO

Others

Operation Desk

Service Desk

Infrastructure

Health Desk

Logistics Desk

Agri Desk

Information and

Communication

Transit Camp Relief Camp Cattle Camps Feeding Centres


Institutional arrangements at state level::

Disaster Mitigation and Management Centre:: The disaster mitigation and management centre is the apex centre in the field of disaster mitigation

and management in Uttaranchal. It was established in October 2001. The objectives of DMMC are

To find and promote solutions to the root causes of disasters in the state of Uttaranchal

and

To facilitate the smooth transition from relief to rehabilitation and development. DMMC has

a well structured framework to carry out its activities. It involves three focallayers of

participatory organizations.

1. State level: Ministry/department of disaster management through State emergency Operations

Group under the control of Principal Secretary/ Commissioner, disaster management.

2. District level: District ,Magistrate through District Emergency Operations Group under

the control of District Disaster Manager.

3. Local level: Tehsil/Block/Village through Site Operations Centre under the control of

the Site Manager.

Through these institutions, DMMC strives to::

Offer an extensive range of training programmes.

Provide advance information about likely disasters through latest technologies.

Maintain a network of experienced experts working in the field.

Provide consultancy services to all levels of government and NGOs and

Develop a strong regional knowledge base towards disaster policy.

The DMMC has also formulated a strategy to be adopted for five years from its inception.

Ministry of Disaster Management

Pr. Secretary of Disaster Management

Commissioner Disaster Management Disaster Management and Mitigation Center

Pr. Secretary of Disaster Management


These include::

Setting up of State Emergency Operations Group.

Setting up of District Emergency Operations Group

Institutional Strengthening and Coordination

Strengthening of Village Disaster Intervention team.

Creation and strengthening of Rescue Teams.

Networking of NGOs.

Capacity building, training and sensitization.

Creation of RS/GIS Database for village, town, block and the district.

Updating the strategy for disaster management from the lessons learnt.

Technical assistance to the Government of Uttaranchal and

Consultancy.

District Project Officer:: Amongst the various initiatives taken for disaster management is the creation of a post of District

Project Officer. This new post has been created under the Disaster Risk Management Program of

Government of India-United Nations Development Programme [UNDP]. This program aims to

contribute towards the social and economic development goals of the national and state

Governments by enabling them to programme is being implemented in 8 districts of Uttaranchal

with the help of the local governments and PRI institutions in two phases.

The District Project Officer (DPO) will be posted at district head quarters to work in consultation with

the state nodal agency DMMC and under the direct supervision of the District Magistrate

and perform the following duties;

Facilitate and Coordinate for preparation of multi-hazard Disaster Management plans of the

District, Blocks, GPs and Villages along with government functionaries.

Help the District administration Block for selection of partners for the Community Based

Disaster preparedness work.

Helping in development of awareness campaign strategy and awareness generation activities

like street plays, rallies, painting and drawing competitions amongst school children on

disaster preparedness.

Supporting in the training and capacity building programme of government officials/PRIs/

NGOs/CBOsN outh Clubs/ SHGs Teachers and others concerned on various aspects of

disaster management.

Facilitate the process Community Based Disaster Preparedness exercises at blocks, GP and

village levels through active involvement of government officials, PRIs, NGOs/CBOs, youth

clubs.

Coordinating and facilitating training programmes for disaster management task forces

formed at various levels on Health and First Aid, Search and Rescue Operation, Sanitation,


Shelter Management, Carcasses & Garbage disposal, use of early warning equipments IEM!

radio operation etc.

Establishing linkages with Civil Society Response group at various levels for emergency

response plan development.

Networking with NGOs/CBOs/NCC/NSS and other agencies working in the field of Disaster

Management for unification of the strategy and process.

Assisting the Collector and District Magistrate in performing all activities related to disaster

management.

Regular reporting to the Collector State Nodal Agency and State Project Officer on the

programme activities.

Helping district administration in organizing mock drill at various levels.

Facilitating establishment of effective communication systems for early tracking and

dissemination of warnings at the district level.

Facilitating establishment of control rooms at District and block levels for Disaster

Management Information dissemination.

Initiatives for Earthquake Resistant Houses:: In 1999, Garhwal was rocked with an earthquake which was measured 6.8 on the richter scale.It was

second major earthquake in the last 10 years. Around 20000 houses collapsed,85000 houses

damaged and 130 people lost their lives. One of the prime reasons of such a huge devastation was

that the structures could not withstand the tremors because the design and quality of these houses

was substandard. Earthquake resistance was not kept in view while constructing these houses.

Thus, it is felt today that all houses in Uttaranchal should be earthquake resistant. Constructing a

new house is an expensive preposition and more so in the hilly terrains as it is difficult to transport

modem construction equipments and articles in these regions. Moreover, construction activities

lead to environmental degradation which is a potential threat in the region. In this context, it

becomes imperative to repair and retrofit the existing structures so that they can withstand any

future eventuality. It is not only cost effective hut also will help in future from the devastating

aftereffects of earthquakes. The existing structure should be repaired and retrofitted accordingly,

while, the new structures should be constructed as per the earthquake resistant techniques. With

the help of modem day techniques, the old houses can be converted into earthquake resistant

houses without demolishing them even there is no need to remove the roofs. It is not required that

houses should be of brick, cement and iron rods only. It is quite possible to construct houses with

the locally available materials. The only thing which should be kept in mind is that appropriate

techniques should be adopted.


Repair and Retrofitting of Existing Houses:: The house owners have little or no awareness about the dangers of a future disaster and the ways

the houses can be made stronger to withstand the impact of a future disaster. It is difficult for

people to invest more than their already stretched resources in their houses to build better. There is

little or no knowledge in the public about the alternate affordable technologies. Nor do the people

know that their vulnerability to future disasters can be reduced through the use of suitable

technologies for the construction.

DMMC has taken up this task and is creating awareness in this regard through its machinery. It has

laid down various categories of damage as G-l, G-2, G-3, G-4. and has developed detailed plan to

rectify that.

In order to prove the strength of such houses an experiment was done in Latur in 1998-99. In this

demonstration two houses were constructed on a temporary platform. The first one was a

traditional house of stone, mud and wood while the second was again a traditional house but

Retrofit with new techniques. Now, earthquake like situation was created by hitting the platform

with a tractor. It was shown that Retrofitted house withstand such collisions. The total expenditure

in Retrofitting. is just 15% of constructing a new house. This experiment is being given wide publicity

through pamphlets and training programmes to build up acceptability and confidence of the masses.

DMMC has prepared booklets for local masons in Hindi language.

These booklets are prepared after taking into account the experiences of Lattur in Maharashtra,

Jabalpur in MP and Uttaranchai state's own house construction methods. Aiso, earthquake related

Indian standards have been taken into account.

Training:: One major initiative taken by DMMC is that of Building centers which have played a pivotal role in

promoting safer building technologies and practices. A number of workshops involving middle level

government officers, academicians and engineers took part in the workshops. These workshops

were:

Review of functioning of Building Centers, their role in Earthquake Resistant Constructionand

means to revitalize them.

Review of adequacy of current legislation in implementation of Building codes and meansto

improve implementation of codes.

Review of current curriculum with regard to awareness about Earthquake Vulnerability

of the state population and recommendations to include Earthquake Engineering in Civil

Engineering curriculum.

Mason's Training:: To percolate the awareness and technology at the bottom level DMMC has organized training camps

for the Masons. One such camp was held in the district Rudraprayag from 28th March to 31st March


2004. In this camp, 35 masons from different villages were trained by experts in building earthquake

resistant structures and retrofitting techniques. In the training, a model of different retrofit

techniques was constructed. It consisted of traditional as well as modem design of construction and

their retrofitting. During our visit to Rudraprayag district we visited the place and had a look on this

model. In order to prevent the sliding of lower portion of hills one more model was constructed

there. These masons after getting trained will further act as 'gurus' to their next generations and will

ensure the sustainability of the process. At the district level, a computerized database of trained

masons and construction workers is being created. Till date, 800 masons have been registered in the

database.

Integration with Other Schemes:: DMMC is also exploring the possibilities of integrating disaster preparedness and mitigation efforts

with other government schemes.

IAY:: Under this scheme government provides assistance to weaker and marginalized sections of society

to construct houses. DMMC is trying that all houses to be constructed under the scheme should be

earthquake resistant. Block offices are taking care of this aspect. During our field visit, we came

across one such initiative where a BPL family who lost their house due to sinking of the ground was

provided a house under lAY.

53

Rina Sahay Yojana:: Under this scheme, Government of Uttaranchal is providing a loan of Rs 30000-40000 with Rs 10000

as subsidy to construct earthquake resistant houses.

NATIONAL DISASTER MANAGEMENT FRAMEWORK:: I.INSTITUTIONAL MECHANISMS::

Expected Outputs Areas of

intervention

Agencies/sectors

to be involved and

resource linkages Nodal agency for

disaster management at

the national level with

appropriate systems

(i)Constitution of

National Emergency

Management Authority

with appropriate legal,

financial and

administrative powers.

Ministries/ Departments

of Health, Water

Resources, Environment

and Forests, Agriculture,

Railways, Atomic

Energy, Defence,


(ii)Roles and

responsibilities of the

NEMA:

-Coordinating multi hazard

mitigation,

prevention, preparedness

and response programs.

- Policies for disaster risk

reduction and mitigation

-Preparedness at all levels.

-Coordination of response

-Coordination of post disaster

relief and rehabilitation.

-Amendment of existing laws,

procedures, instructions.

Ministries/ Departments of

Health, Water Resources,

Environment and Forests,

Agriculture, Railways, Atomic

Energy, Defence, Chemicals,

Science & Technology, Rural

Development, Road Transport

& Highways Etc.

Chemicals, Science &

Technology, Rural

Development, Road

Transport & Highways

etc.

Setting up State Disaster

Management Authorities

(i) State Disaster

Management Authority

to be headed by the Chief

Minister.

(ii) The Authority to lay

down policies and

monitor mitigation,

prevention and

preparedness as also

oversee response.

Ministers for

Agriculture, Home,

Disaster Management,

Water Resources,

Health, Road &

Transport, Civil

Supplies, Environment &

Forests, Rural

Development, Urban

Development and Public

Health Engineering

Departments as

Members.


II.LEGAL/POLICY FRAMEWORK:: Disaster Management to

be listed in List – III –

[Concurrent List] of

Seventh Schedule to the

Constitution

(i) Bill to be drafted.

(ii) Bill to be brought

before Parliament

Ministry of Home

Affairs/

Ministry of Law

(Legislative Department)

State Disaster

Management Acts

Model Act to be

circulated to the States.

Ministry of Home

Affairs

State Governments

National Policy on

Disaster Management

(i) Mainstreaming

disaster management into

planning and

development process.

(ii) Mandate safe

construction.

(iii) Coordinated action

by all relevant

Departments as per

policy

Ministry of Home

Affairs, Ministry of

Finance, Planning

Commission, Ministry of

Environment & Forests,

Rural Development,

Urban Development and

other relevant Ministries

to be consulted.

States to enunciate

Policy on Disaster

Management .

(i) Mainstreaming

disaster management into

planning and

development process.

(ii) Mandate safe

construction.

(iii) Coordinated action

by all relevant

Departments as per

policy

State Governments

State Disaster

Management Codes

Amendment of existing

relief codes/scarcity

codes/famine codes to

incorporate mitigation,

State Governments


preparedness and

planning measures at all

levels from community

to State, constitution of

Emergency Support

Teams /Disaster

Management Teams

/Committees /State

Disaster Management

Authorities, delegation of

administrative and

financial powers to

disaster incident

managers etc, protocol to

update the inventory of

resources and plans.

iii.EARLY WARNING SYSTEMS::

(i) State of the art

sensors to be set up.

(ii) Hazard monitoring,

tracking and modelling.

(i) IMD/CWC to carry out

a review of sensors

available and draw up

plans for strengthening the

system.

(ii) Models to be updated

to improve prediction

accuracy.

Indian Meteorological

Department/ Central

Water Commission/

National Centre for

Medium Range

Weather Forecasting

Warning Protocols (i) Warning protocols to

be user friendly.

(ii) Warning to be

communicated as quickly

as possible to the

States/districts/community.

(iii) Protocols should be

simple to understand.

(iv) Districts to set up

protocols for

Ministry of Home

Affairs/ State

Governments /Indian

Meteorological

Department/ Central

Water Commission/

National Remote

Sensing Agency/

Information and

Broadcasting/


communication of early

warning to the community.

(v) Panchayats/local

bodies to be used for early

warning communication.

vi) Communication

linkages for early warning.

Doordarshan/ All India

Radio.

Disaster Management Act, 2005:: The Act lays down institutional, legal, financial and coordination mechanisms at the National, State,

District and Local levels. These institutions are not parallel structures and will work in close

harmony. The new institutional framework is expected to usher in a paradigm shift in DM from

relief-centric approach to a proactive regime that lays greater emphasis on preparedness,

prevention and mitigation.

Institutional Framework under the Act::

National Disaster Management Authority (NDMA):: The NDMA, as the apex body for disaster management, is headed by the Prime Minister and has the

responsibility for laying down policies, plans and guidelines for DM and coordinating their

enforcement and implementation for ensuring timely and effective response to disasters. The

guidelines will assist the Central Ministries, Departments and States to formulate their respective

DM plans. It will approve the

National Disaster Management Plans and DM plans of the Central Ministries/Departments. It will

take such other measures, as it may consider necessary, for the prevention of disasters, or

mitigation, or preparedness and capacity building, for dealing with a threatening disaster situation

or disaster. Central Ministries/Departments and State Governments will extend necessary

cooperation and assistance to NDMA for carrying out its mandate. It will oversee the provision and

application of funds for mitigation and preparedness measures. NDMA has the power to authorise

the Departments or authorities concerned, to make emergency procurement of provisions or

materials for rescue and relief in a threatening disaster situation or disaster. The general

superintendence, direction and control of the National Disaster Response Force (NDRF) is vested in

and will be exercised by the NDMA. The National Institute of Disaster Management (NIDM) works

within the framework of broad policies and guidelines laid down by the NDMA.

The NDMA is mandated to deal with all types of disasters; natural or man-made. Whereas, such


other emergencies including those requiring close involvement of the security forces and/or

intelligence agencies such as terrorism (counter-insurgency), law and order situations, serial bomb

blasts, hijacking, air accidents, CBRN weapon systems, mine disasters, port and harbor emergencies,

forest fires, oilfield fires and oil spills will continue to be handled by the extant mechanism i.e.,

National Crisis Management Committee (NCMC).

National Executive Committee (NEC):: The NEC comprises the Union Home Secretary as Chairperson, and the Secretaries to the Govt. of

India in the Ministries/Departments of Agriculture, Atomic Energy, Defence, Drinking Water Supply,

Environment and Forests, Finance (Expenditure), Health, Power, Rural Development, Science &

Technology, Space, Telecommunications, Urban Development, Water Resources and the Chief of the

Integrated Defence Staff of the Chiefs of Staff Committee as members. Secretaries in the Ministry of

External Affairs, Earth Sciences, Human Resource Development, Mines, Shipping, Road Transport &

Highways, and the Secretary, NDMAwill be special invitees to the meetings of the NEC.

The NEC is the executive committee of the NDMA, and is mandated to assist the NDMA in the

discharge of its functions and also ensure compliance of the directions issued by the Central

Government. The NEC is to coordinate the response in the event of any threatening disaster

situation or disaster. The NEC will prepare the National Plan for Disaster Management based on the

National Policy on Disaster Management. The NEC will monitor the implementation of guidelines

issued by NDMA. It will also perform such other functions as may be prescribed by the Central

Government in consultation with the NDMA.

State Disaster Management Authority (SDMA):: At the State level, the SDMA, headed by the Chief Minister, will lay down policies and plans for DM

in the State. It will, inter alia approve the State Plan in accordance with the guidelines laid down by

the NDMA, coordinate the implementation of the State Plan, recommend provision of funds for

mitigation and preparedness measures and review the developmental plans of the different

Departments of the State to ensure the integration of prevention, preparedness and mitigation

measures.

The State Government shall constitute a State Executive Committee (SEC) to assist the SDMA in the

performance of its functions. The SEC will be headed by the Chief Secretary to the State Government

and coordinate and monitor the implementation of the National Policy, the National Plan and the

State Plan. The SEC will also provide information to the NDMA relating to different aspects of DM.


District Disaster Management Authority (DDMA):: The DDMA will be headed by the District Collector, Deputy Commissioner or District Magistrate as

the case may be, with the elected representative of the local authority as the Co- Chairperson. The

DDMA will act as the planning, coordinating and implementing body for DM at the District level and

take all necessary measures for the purposes of DM in accordance with the guidelines laid down by

the NDMA and SDMA. It will, inter alia prepare the District DM plan for the District and monitor the

implementation of the National Policy, the State Policy, the National Plan, the State Plan and the

District Plan. The DDMA will also ensure that the guidelines for prevention, mitig ation, preparedness

and response measures laid down by the NDMA and the SDMA are followed by all the Departments

of the State Government at the District level and the local authorities in the District.

Local Authorities:: For the purpose of this Policy, local authorities would include Panchayati Raj Institutions (PRI),

Municipalities, District and Cantonment Boards, and Town Planning Authorities which control and

manage civic services. These bodies will ensure capacity building of their officers and employees for

managing disasters, carry out relief, rehabilitation and reconstruction activities in the affected areas

and will prepare DM Plans in consonance with the guidelines of the NDMA, SDMAs and DDMAs.

Specific institutional framework for dealing with disaster management issues in mega cities will be

put in place.

National Institute of Disaster Management (NIDM):: The NIDM, in partnership with other research institutions has capacity development as one of its

major responsibilities, along with training, research, documentation and development of a National

level information base. It will network with other knowledge-based institutions and function within

the broad policies and guidelines laid down by the NDMA. It will organise training of trainers, DM

officials and other stakeholders. The NIDM will strive to emerge as a ‘Centre of Excellence’ in the

field of Disaster Management.

National Disaster Response Force (NDRF):: For the purpose of specialised response to a threatening disaster situation or disasters/ emergencies

both natural and man-made such as those of CBRN origin, the Act has mandated the constitution of

a National Disaster Response Force (NDRF). The general superintendence, direction and control of

this force shall be vested in and exercised by the NDMA and the command and supervision of the

Force shall vest in an officer to be appointed by the Central Government as the Director General of

Civil Defence and National


Financial Arrangements::

National Disaster Response and Mitigation Funds:: A National Disaster Response Fund may be constituted as mandated in the Act. The National

Disaster Response Fund will be applied by the NEC towards meeting expenses for emergency

response, relief and rehabilitation, in accordance with the guidelines laid down by the Central

Government in consultation with the NDMA. The proposal for merging the National Calamity

Contingency Fund (NCCF) with the National Disaster Response Fund shall be as recommended by the

Finance Commission from time to time.

Similarly, as mandated by the Act, the National Disaster Mitigation Fund (NDMF) may be created for

projects exclusively for the purpose of mitigation. The NDMF shall be applied by the NDMA and shall

be as recommended by the Finance Commission from time to time.

Insurance::

Nothing is certain in this world except the death but even in this the timing of death is not certain.

There is uncertainty in the world. Every one has a desire to be secure. Every one takes precautionary

measures to prevent the unforeseen and unfortunate events. Even then , accidents do occur.

Therefore to cover such incidents we require insurance . This occurrence has to be random,

accidental and not the deliberate creation of the insured person. Risk which may be measured in

money and which is not against public policy can only be insured.

Insurance is a technique , which provides for collection of small amounts of premium from many

individuals out of which losses suffered by few are reimbursed. In this method, the individual

insured is able to buy protection through the payment of a small cost viz. premium.

Functionally insurance may be defined as a method where by the uncertain risks of individuals are

combined in a group through small individual contributions out of which those who suffer losses are

reimbursed.

Legally insurance is a contract between the insurer and the insured where by in consideration of

payment of the premium by insured , the insurer agrees to make good any financial loss the insured

may suffer due to the operation of a peril insured

The policy which is a document issued by the insurer is evidence of the contract. A contract of

insurance does not undertake to prevent the occurrence of the peril insured against. What it

provides is a promise to make good the financial loss caused by the operation of the insured peril.

BASIC INSURANCE TERMINOLOGIES:: Insured:: The person known as the policyholder, a person with insurance coverage.

Insurer::


A company licensed to transact the business of insurance and issue insurance policies .

Policy:: It's the written contract between an insurance company and its insured. It defines what the

company agrees to cover for what period of time and describes the obligations and responsibilities

of the insured.

Premium::

It's the amount of money a policyholder pays for insurance protection.

Claim:: It's the notice to the insurance company that under the terms of a policy, a loss maybe covered.

Indemnity:: Legal principle that specifies an insured should not collect more than the actual cash value of a loss

but should be restored to approximately the same financial position as existed before the loss.

Broker:: An organization or person paid by the policyholder to look for insurance on their behalf.

Expiration Date:: This is the date on which the policy ends.

Grace Period::

A period (usually 30 or 31 days) following each insurance premium due date, other than the first due

date, during which an overdue premium may be paid. All provisions of the policy remain in force

throughout this period

Limit:: It's the maximum amount paid by the insurance company under the terms of a policy.

Underwriting:: The process of classifying applicants for insurance by identifying characteristics such as age, gender,

health, occupation and hobbies. People with similar characteristics are grouped together and are

charged a premium based on the group's level of risk.

GENERAL INSURANCE:: Insurance other than ‘Life Insurance’ falls under the category of General Insurance. General

Insurance comprises of insurance of property against fire, burglary etc

The non-life insurance sector is on an upswing! The non-life insurance industry in India has grown by

over 16 % p.a. over the last 5 years.

There is a vast business potential that lies untapped, as more and more cities enter the development

phase….

Mr. Yogesh Lohiya,

Chairman-cum-Managing Director of gic


WHO SHOULD BUY GENERAL INSURANCE? Anyone who owns an asset can buy insurance to protect it against losses due to fire and theft and so

on. Each one of us can insure our and our dependents’ health and well being through hospitalization

and personal accident policies. To buy a policy the person should be the one who will bear financial

losses if they occur. This is known as insurable interest.

RISK COVERED UNDER GENERAL INSURANCE:: Non-life insurance companies have products that cover property against fire and allied perils, flood,

storm and inundation, earthquake and so on. There are products that cover property against

burglary,

theft etc. The non-life companies also offers policies covering machinery against breakdown, there

are policies that cover the hull of ships and so on.

IMPORTANCE OF GENERAL INSURANCE:: General insurance cover is necessary for every fami ly. It is important to protect one’s property,

which one might have acquired from one’s hard earned income. A loss loss or damage to one’s

property can leave one shattered. Losses created by catastrophes such as tsunami, Earthquakes,

Cyclones etc.have left many homeless and penniless. Such losses can be devastating but insurance

could help mitigate them. Property can be covered , so also the people against personal accidents. A

health insurance policy can provide financial relief to a person undergoing medical treatment

whether due to a disease or an injury.

Industries also need to protect themselves by obtaining insurance covers to protect their building ,

machinery, stocks etc. They need to cover their liabilities as well. Financiers insist on insurance. So

,most industries and businesses that are financed by banks and other institutions do obtain covers.

But are they obtaining the right covers? And are they insuring adequately are questions that need to

be given some thought. Also organizations or industries that are self-financed should ensure that

they are protected by insurance.

Need for insurance in disasters::

In the Indian context where people below the poverty line are high and per capita income is low,

insurance penetration is bound to be low. It is , therefore, essential to make the best use of available

public insurances and affordable commercial insurances, in disaster mitigation.

The loss of property in Gujarat is likely to be close to Rs 10,000 crore. Most of this was residential

property and, tragically, uninsured. This means that survivors of the quake are faced with the bleak

prospect of not getting a penny for what most would have regarded a rock solid investment, built


with a lifetime’s savings. The irony is that earthquake insurance is available in the country. Most

industrial establishments are, in fact, insured against earthquakes and fire. But, residential

establishments seldom are. This must change. Just as in the case of motor insurance, where third

party insurance is compulsory, insurance against calamities – earthquake, flood or fire – must also

be made compulsory. It already is in most developed countries – where property is separately

insured against different kinds of risk depending on the location and exposure to the risk in question

– and there is no reason why it should not be made so in India as well.

People affected by calamities would not then have to depend on charity, but would instead be able

to face the prospect of their immediate state of homelessness with greater equanimity, secure in

the knowledge that they will receive compensation once they file their insurance claim. It was US

insurance companies that picked up the tab after Hurricane Mitch and the earthquake in Los

Angeles, for instance. True, it left many insurance companies bleeding but that risk is an integral part

of the insurance business. This will have the additional advantage of serving as a check on the

quality of construction, since insurance companies, anxious to limit their liability, will insist on

certain minimum standards being met. For the same reason, they will also be compelled to draw up

zoning maps, demarcating areas as flood/earthquake/ cyclone prone and accordingly tailor policies

to the requirements of each area instead of having the current one-size-fits-all approach.

The insurance industry has at its disposal comprehensive worldwide loss experience which it uses

not only in calculating premiums commensurate with the risk and in classifying hazard areas, known

as rating zones, but also in tracing relationships between event intensity and loss intensity and

estimating loss potentials from realistic disaster scenarios (Gopalakrishanan, 2001).

On the other hand, the insurance industry is known to have extensive information in the form of

leaflets, brochures, films and television spots with which it alerts the public to risks and draws

attention to possible effective precautions.

Before, such information campaigns have concentrated on fire, accident and burglary prevention;

efforts today are shifting more and more to the area of natural hazards, where there are many

possibilities for loss prevention, which hitherto have scarcely been tapped.


Some of the important milestones in the general

insurance business in india:: 1907:: The Indian Mercantile Insurance Ltd. Set up , the first company to transact all classes

of general insurance business.

1957:: General Insurance council , a wing of the Insurance Association of India, frames a code

of conduct for ensuring fair conduct and sound business practices.

1968:: The Insurance Act amended to regulate investments and set minimum solvency

margins and the tariff Advisory Committee set up.

1972:: The General Insurance Business (Nationalization) Act,1972 nationalized the general

insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National insurance

company ltd.,the new india assurance company ltd., the oriental insurance company ltd., and

the united india insurance company ltd. GIC incorporated as a company.

BODIES THAT REGULATE THE SECTOR:: For better regulation purpose of the insurance sector the government has established following

bodies:

1. IRA:: Insurance Regulatory Authority:: The IRA, under the chairmanship of Rangachary, was set-up in January 1996. The IRA Bill has

to be passed by parliament to make the IRA a statutory body. Comprehensive legislation

aimed at reviewing the insurance Act of 1938 and repealing the life insurance corporation

Act of 1956 have to be passed.

2. IRDA:: Insurance Regulatory and development

Authority:: The Insurance Regulatory and Development Authority, constituted under the IRDA Act, 1999,

provide for the establishment of an authority to protect the interest policyholders, to regulate,

promote and ensure orderly growth of the life insurance industry.

Business Requirement:- A company will not be issued a license unless the IRDA is satisfied with the sound financial condition,

the general character of management, the volume of business, the capital s tructure, earning

prospects for the insurers and that the interests of the general public will be served if registration is

granted to the insurer.

Foreign insurance companies have been allowed to have a maximum 26% share holding. No life

insurance company can be registered under the Act unless they have a paid up capital of Rs.100

crores. Every life insurer shall deposit with the reserve bank of India one percent of the total gross


premium written in India in any financial year, not exceeding Rs.10 crores

.

Investment of Assets:- Every insurer is required to invest, and keep invested, assets equivalent to not

less than the net liabilities as follows:

a. 25 % in government securities,

b. a least 25% of the said sum in government securities or other

approved securities and

b. the balance in any approved investment rated as “very strong” or more by reputed rating

agencies, which include various debt instruments on which dividend on its ordinary shared

for the five years immediately preceding or for at least five out of the six or seven years

immediately preceding have been paid and which have priority in payment over ordinary

shares of the company in winding up.

3. TAC:: Tariff Advisory Committee:: The tariff advisory committee established under the Act is empowered to control and regulate the

rates, terms, and etc. that may be offered by insurers in respect of any risk or of any category of

risks. It is provided that in fixing, amending or modifying such rates etc. the committee shall try to

ensure as far as possible that there is no unfair discrimination between risk of essentially the same

hazard and also that consideration is given to past and prospective loss experience. Every insurer is

required to make payment to the TAC of the prescribed annual fees.

Present situation of General Insurance in India::

The Indian insurance sector is rapidly moving towards international standards of free (risk-based)

market pricing and new/innovative product offerings. Big changes have occurred over the last few

years, during which the sector was opened to private participation, along with foreign direct

investment (FDI) capped at 26%.

India is the 5th largest market in Asia by premium, following Japan, Korea, China and Taiwan. The

country is geographically large and has the world’s 2nd largest population -- 1.13 billion in 2007 –

but it also has one of the lowest penetration rates for property and casualty insurance in Asia in

terms of premium as a percentage of GDP.

India’s general insurance market witnessed a variety of changes as deregulation continued at a

hectic pace.


The total number of general insurers registered with IRDA are increasing day by day, with the

registration of SBI General Insurance Company Limited, a joint venture general insurance company

promoted by State Bank of India and Insurance Australia Group, Australia, as a general insurer in

December 2009. Moreover, L&T General Insurance is readying to launch its operations in the next

three to five months.

The Gross Premium underwritten by public sector non-life insurers for the April-December 2009

period posted year-on-year growth of 11.37 per cent as compared to the year-on-year growth of

7.93 per cent posted by private sector non-life insurers. Overall, the non-life insurance sector grew

9.95 per cent in April-December 2009, compared to the corresponding period last year. According to

IRDA data, out of the US$ 5.46 billion premium underwritten by the industry during the April -

December 2009 period, US$ 3.24 billion came from the four public sector companies as compared to

US$ 2.91 billion during the same period in 2008.

Moreover, in the 2010-11 budget, Finance Minister, Mr Pranab Mukherjee, has decided to roll back

the government’s decision to tax the unrealised gains of non-life insurance companies. “The

appreciation in the value of investments, being in the nature of unrealized gain is not taken into

account for determining profit or loss of non-life insurance business as per the IRDA regulations. It is,

therefore, proposed that the unrealized gains due to appreciation in the value of investments will

not be included in the total income,” according to the budget documents.

According to data from the IRDA (Summary Reports of Motor Data of Public and Private Sector

Insurers - 2008-09), in 2008-09, nearly 30 million vehicles were registered and a total premium

worth US$ 2.03 billion was collected.

MAJOR CHALLENGES::

Awareness:: It is the main problem faced by all the insurance company is lack of awareness

about Risk exposures and about insurance products available to the customers. In India only 20% of

the population is insured. Majority of the populations who are living in the rural areas and sub urban

areas are not aware of the about risk exposures and about insurance products available in the

market.

Affordability:: In India majority of the population standard of living is low and majority

of them belong to middle class and lower class and they have very little money left after satisfying

basic needs. Uneconomical premium of insurance policy is also a major constrains.


Accessibility:: The policies are complex to understand by a layman the procedures are

difficult to obtain policies if done individual .there are a lot of activities and formalities involved in

order to get the insurance policy.

Inappropriate / inadequate distribution strategies:: Majority of the population is not aware of the benefits that the insurance company provides. And

they are also not aware of the various schemes which these companies introduce.

FUTURE PROSPECTS::

Huge market largely untapped especially in Rural & Urban regions can be targeted to

increase the number of insurer in the market.

As high as 70% of population is still not covered by insurance. So the company can conduct

mass campaign and educated the people more about the products and also about the risk

covered and the various benefits which they can avail .The Company can use various medium

to increases the awareness.

Increase in standard of living, disposable income, literacy, insurance awareness throws open

huge opportunities on insurance.

High growth in Automobile sector.

Huge strides in Health Care opening up huge Health Insurance potential.

In Rural sector large number of Micro finance institutions, Self Help Groups are setup who

can be the major clients of this industry.

The Government initiatives on Mass insurance.

General Insurance would grow at CAGR 17% next 5years.

Pros of Disaster Insurance:: It could save livelihoods, therefore it can be more financially sustainable than traditional

humanitarian aid, which focus on saving lives.

By making disaster risk reduction an integral part of national policies and guaranteeing a

predictable and reliable payout in case of disaster, it will allow for longer term planning in

development.

By reducing the need for international involvement in emergencies, it can diminish the

negative effect external relief and reconstruction interventions often have in eroding local

markets and exacerbating social inequalities (Pelling, 2007).

It will create or reinforce the idea that the state has responsibilities to ensure its citizens’

safety and protection of their livelihoods (Pelling, 2007).

It can increase governments self-determination.


It can guarantee greater dignity for the beneficiaries than aid appeals (Syroka and Wilcox,

2006).

If weather data collected are openly shared, they can be valuable for any Disaster Risk

Reduction programme.

Current experience is, according to the experts involved in its implementation, transferable

to other countries with available historical and update weather data. The World Bank and

WFP are also exploring the opportunity for Satellite Data to be considered acceptable by the

reinsurance market as this would allow virtually insuring any country in the world against bad

weather, even if weather stations are not available.

Challenges & Limitations of Disaster Insurance :: There is the risk of conflict with existing response capacities, where existing systems can

overlap with new programmes complementing the Insurance (see possible conflict between

DPPC and Contingency Plan in Ethiopia3)

It seems quite clear from actual experience that Disaster Insurance can not be a stand alone

tool and it needs to be part of a broader contingency plan, since it can not cover the risk of

mild droughts or other chronic risks (as otherwise the premium would become too costly).

It is not capable of addressing all types of humanitarian crisis (for instance crisis due to

conflict or poor governance) and therefore, as a social protection tool, it needs to be part of

a broader set of emergency response mechanisms (Barnett et al., 2006).

It is also important to recognize that insurance can at the most replace losses but it is not

oriented to create improvements in quality of life (Pelling, 2007).

List of GENERAL INSURERS::

Public Sector:: National Insurance Company Limited www.nationalinsuranceindia.com

New India Assurance Company Limited www.niacl.com

Oriental Insurance Company Limited www.orientalinsurance.nic.in

United India Insurance Company Limited www.uiic.co.in

Export Credit Guarantee Corporation` www.ecgcindia.com

Agriculture Insurance Company of India Limited www.aicofindia.org

Private Sector:: Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in

ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com

IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in

Reliance General Insurance Co. Limited www.ril.com

Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com

http://www.uiic.co.in/

http://www.ecgcindia.com/


TATA AIG General Insurance Co. Limited www.tata-aig.com

Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com

Export Credit Guarantee Corporation www.ecgcindia.com

HDFC Chubb General Insurance Co. Ltd.

BHARTI-AXA General insurance

FUTURE GENERALI

ICICI Prudential General Insurance

AEGON Religare General Insurance Ltd.

REINSURER:: General Insurance Corporation of India www.gicindia.com

Market share of different companies ingeneral

insurance industry::

Table-2


Methodology::

Literature Survey::

The analysis has started with the literature survey of various news papers, magazine which helped

the various aspects of the insurance industry in India. According to Parasuraman et al (1985)

customer’s perceptions of the service received equate with customer’s prior expectations, and then

a quality service has been delivered.

Design of Questionnaire:: A questionnaire was prepared on the basis of objective of the study. It was parted into some

categories as follows

Personal details of the customers

Experience of natural disaster

Awareness about disaster insurance

What they think about disaster insurance is it really effective to recover the damages caused

by disaster.

A sample questionnaire is given into Annexure-I.

Design of sample survey:: Primary data was collected in the sample size of seventy five

due to time constraint. Data was collected through one to one interaction from different people. The

respondents are from govt. officers, businessmen, shopkeepers etc. The respondent were mostly from

Rajpur Road area, Balliwala chock, Canuaght Place, Gandhi Road and Indira Nagar area. They were from

different age group and income level.

Data Tabulation::

Schematics showing Methodological Steps


Observations & Findings::

FIG:: 1 Source: Questionnaire

Out of 75 sample size it was found that in the field of experience of natural disaster natural disaster

68% respondent has experience of natural disaster. From this we can say that Uttaranchal state is a

disaster prone state.

Those have the experience of natural disaster among of them 64% of the people has the experience

of earthquake ,so it is clear that Uttaranchal state is liable to several earthquakes.


68%

32%

EXPERIENCE OF NATURAL DISASTER

YES

NO

64%14%

20%2%

VARIOUS TYPES OF DISASTER

EARTH QUAKE

HOUSEHOLD FIRE

LAND SLIDES

WIND STORM



From this figure we can interpret that the people of Dehradun generally get the information related

to disaster, how to make their home and life safer from disaster.

FIG::4 Source: Questionnaire

From this figure we can say only 12% people has disaster insurance coverage.

12%

88%

Disaster insurance coverage

yes

no



From the previous figure it is clear that 64% of the people are aware about disaster insurance , but

the most important thing is that do they have insurance coverage?


From this figure we get to know that those who aware about disaster insurance among of them only

42% people has insurance coverage. The penetration of insurance should increase to reduce the

financial damages caused by disaster. Govt. should take some initiative to promote insurance. Later

we will see what the opinion of the people of Dehradun that Govt. should take some initiative to


promote disaster insurance.


Those who has disaster insurance coverage among of them 63% has earthquake coverage, 22%

coverage against land slides, 11% against flash flood and 4% has coverage against fire.


In Dehradun in general insurance there has 4 major players general insurance corporation has 40%

market share; new india assurance has 35% market share; united india insurance has 20% market

share and oriented insurance has 5% market share.



I also try to find out the perception of the people of Dehradun about disaster insurance. What they

think about disaster insurance. Is disaster insurance effective to recover the damages caused by

natural disaster. 61.2% of the respondent those who aware about disaster insurance , think that

‘disaster insurance is effective to recover the damages caused by natural disaster.’ And another

amazing thing is that 91.2% of the respondent think that Govt. of Uttaranchal should take some

initiative to improve the awareness of disaster insurance.

CONCLUSION:: Uttaranchal, due to its peculiar geographical setting is vulnerable to minor ecological changes. This

makes the state disaster prone in terms of land slides, forest fires, cloud bursts, flash floods, and

most importantly earth quakes. Given the frequency and the unpredictability of the occurrence of

these disasters, an attempt to develop capacity to undertake disaster mitigation strategies is very

important. The ultimate end of all these strategies should be to reduce the vulnerabil ity of the state

to disasters. These programs should include, inter alia, disaster vulnerability assessment for the

entire state and investment that would reduce vulnerability. In short the emphasis of the approach

to disasters should shift from reaction to anticipation. In other words, the thrust should be on pro

active pre- disaster measures rather than post disaster response.

If any person has disaster insurance he can reduce financial loss caused by disaster. But the people

of Dehradun not so much aware about disaster insurance. In this situation Govt. of Uttaranchal

should take some initiative to improve the awareness of disaster insurance.

91.2% of the respondent think that Govt. of Uttaranchal should take some initiative to improve the

awareness of disaster insurance. 61.2% of the respondent those who aware about disaster insurance

, think that ‘disaster insurance is effective to recover the damages caused by natural disaster.


Disasters both man made and natural are one of the most challenging problems faced by the state

of Uttaranchal. It is true that we cannot avert or prevent the occurrence of many of the disasters.

But by taking appropriate steps, we can definitely reduce their effects. The focus should be on all

areas including connectivity in form of road, telecommunication and air connectivity. It is here that

the role of a proper mechanism to guide and coordinate a comprehensive disaster preparedness

programme becomes relevant. Some of the initiatives have been taken in the right direction but still

there is a long way to go.

Annexure-I::

QUESTIONNAIRE

Dear Respondent,

Thank you for taking the time to answer this questionnaire; this questionnaire is aimed at your awareness

and your perception about insurance for disaster management. Your response will be dealt with strict

confidentially and it will be used only for academic purpose. Again thank you for spending your valuable time

to fill this questionnaire.

GENERAL INFORMATION:: Optional::

Name::……………………………………………………………… Contact no.::………………………………………………………………..

E-Mail ID::………………………………………………………….

Gender:: Male Female Marital status:: Unmarried Married

Age Group (years old) :: Below 30 31-40 41-50 51-60 Above 60

Occupation:: Student Employee Self-Employed Other, Specify………………..

Educational qualification:: Under graduate Graduate Post-Graduate

Other, specify…………………….

Income (annually):: Below 1 lakh 1.01-3 lakh 3.01-5 lakh Above 5 lakhs.

INFORMATION RELATED TO NATURAL DISASTER AND DISASTER INSURANCE::

1. Experience of natural disaster [if no then go to question no.3].

Yes no

2. Type of disaster.

Drought Wildfire

Dust Storm Household Fire


Earthquake Wind Storm

Flood Winter Storm

Landslide / Debris Flow Other (Specify)…………………………

3. Have you ever received information about how to make your family and home safer from natural

disasters? [if no then go to question no.5].

yes No

4. How recently?

Within the last 6 months

Between 2 and 5 years

Between 6 and 12 months

Between 1 and 2 years

5 years or more

5. Are you aware about disaster insurance? [if no then go to question no.11].

Yes No.

6. Does your family have any disaster insurance coverage? [ if no then go to question no.9].

Yes No

7. Do you have the insurance coverage any of the following.

Earth quake Land slides

Flashflood Avalanche

Others-specify……………………………

8. Name of the company.

General insurance corporation of india

New india assurance

Oriented insurance

United india insurance

Other- specify……………………………..

9. What is the main reason that your family doesn’t have insurance coverage against disaster.

Not easily accessible

Too expensive

Not necessary

Never considered it

Other

[Please specify your level of agreement for the following statements(just put a tick mark). SD-strongly

disagree, D-disagree, U-undecided ,A-agree, SA-strongly agree]

10. Disaster insurance is effective to recover the damages caused by natural disaster.

SD D U A SA


11. Govt. of Uttaranchal should take some initiative to improve the awareness of disaster insurance of

the state.

SD D U A SA

Other comments::

………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………

………………………………………………………………………………………………………

…………………………………………………………………………………………………………………

Thank you very much for providing these informations

AbbreviationS:: IAY – Indira Awas Yojana ARMVs – Accident Relief Medical Vans BIS – Bureau of Indian Standards CBOs – Community Based Organisations CBRN – Chemical, Biological, Radiological and Nuclear

CCMNC – Cabinet Committee on Management of Natural Calamities CCS – Cabinet Committee on Security

CSR – Corporate Social Responsibility DDMA – District Disaster Management Authority

DM – Disaster Management GIS – Geographic Information System

GoI – Government of India GPS – Global Positioning System HLC – High Level Committee MHA – Ministry of Home Affairs NCC – National Cadet Corps NCCF – National Calamity Contingency Fund NCMC – National Crisis Management Committee NDEM – National Database for Emergency Management NDMA – National Disaster Management Authority NDMF – National Disaster Mitigation Fund

References:: http://ndmindia.nic.in/EQProjects/Disaster%20Management%20in%20India%20-

%20A%20Status%20Report%20-%20August%202004.pdf

http://www.azadindia.org/social-issues/poverty-in-india.html

http://ncw.nic.in/pdfreports/Gender%20Profile-Uttaranchal.pdf

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df

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Management_131.pdf

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http://en.wikipedia.org/wiki/Avalanche

http://en.wikipedia.org/wiki/Cyclone

http://en.wikipedia.org/wiki/Flash_flood

http://en.wikipedia.org/wiki/Drought

http://en.wikipedia.org/wiki/Climate_of_India

http://saarc-sdmc.nic.in/pdf/publications/sdr/chapter-13.pdf

http://nidm.gov.in/idmc2/PDF/Outcome/Manmade.pdf

http://www.gisdevelopment.net/proceedings/mapworldforum/sem5/MWF_sem5_DisasterManagement_131.pdf

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http://india.gov.in/citizen/agriculture/natural_schemes.php

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http://ndma.gov.in/ndma/hr/consultant.pdf

project on disaster management

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