Project On Disaster Management

A report on
An analysis of POLICIES AND SCHEMES OF INSURANCE FOR DISASTER MANAGEMENT
By Joydeep mondal [09bsddu0033] Karvy stock broking ltd.

KARVY STOCK BROKING LTD. Page 1
A report on
An analysis of POLICIES AND SCHEMES OF INSURANCE FOR DISASTER MANAGEMENT
By Joydeep mondal [09bsddu0033]
Company guide Mr. abhishek mishra [area head- ksbl]
faculty guide prof. vinesh jain [faculty member-ibs dehradun]
KARVY STOCK BROKING LTD.
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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 LimitedDehradun.
Mr. Abhishek Mishra [Area head—Karvy stock broking ltd.]
Prof. Vinesh Jain [Faculty member—IBS-Dehradun]
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Certificate by the organization::
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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.
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Table of contents::
Contents page no.
7 8 8 9 9 12 12 12 13 13 16 21 25 28 28 29 30 32 34 35 36 37 38 39 43 44 46 46
Executive summary Objectives Introduction Company profile Company overview Disaster

Classification of disaster Natural disaster Man made disaster Hazard vulnerability
in INDIA Administrative structure for disaster management in UTTARANCHAL National
disaster management framework Disaster management act 2005 Insurance Basic
insurance terminologies General insurance Need for insurance in disaster Bodies
that regulate insurance sector Major challenges of insurance sector Future
prospects of insurance sector List of general insurers Market share of different
companies in general insurance Methodology Observation and findings Conclusion
Annexure-I Questionnaire Abbreviations References
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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.
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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.
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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
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.
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:: 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.
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
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.
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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.
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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.
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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::

DMMC District Magistrate/ District Disaster Manager Operation Desk Service Desk
Infrastructure Health Desk Logistics Desk Agri Desk Information and Communication
Police Civil Hospital PWD Corporation RTO DSO Others
District Control Room Desk Offices And Officers in Charge
Site Operation centre Site Manager
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Transit Camp
Relief Camp
Cattle Camps
Feeding Centres
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Institutional arrangements at state level::
Ministry of Disaster Management
Pr. Secretary of Disaster Management
Commissioner Disaster Management
Disaster Management and Mitigation Center
Pr. Secretary of Disaster Management
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.
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 pre paration 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 involveme nt 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 s hould be kept in mind is that appropriate techniques should be adopted.
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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
(i)Constitution of National Emergency Management Authority with appropriate legal,
financial and administrative powers.
Agencies/sectors to be involved and resource linkages

Ministries/ Departments of Health, Water Resources, Environment and Forests,
Agriculture, Railways, Atomic Energy, Defence,
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Nodal agency for disaster management at the national level with appropriate systems

Setting up State Disaster Management Authorities
(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. (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.
Chemicals, Science & Technology, Rural Development, Road Transport & Highways etc.
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.
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II.LEGAL/POLICY FRAMEWORK::
Disaster Management to be listed in List – III – [Concurrent List] of Seventh
Schedule to the Constitution State Disaster Management Acts National Policy on
Disaster Management (i) Bill to be drafted. (ii) Bill to be brought before
Parliament Model Act to be circulated to the States. (i) Mainstreaming disaster
management into planning and development process. (ii) Mandate safe construction.
(iii) Coordinated action by all relevant Departments as per policy (i)
Mainstreaming disaster management into planning and development process. (ii)
Mandate safe construction. (iii) Coordinated action by all relevant Departments as
per policy State Disaster Management Codes Amendment of existing relief
codes/scarcity codes/famine codes to incorporate mitigation, State Governments
Ministry of Home Affairs/ Ministry of Law (Legislative Department) Ministry of Home
Affairs State Governments 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 .
State Governments
Page 23
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. (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
Indian Meteorological Department/ Central Water Commission/ National Centre for
Medium Range Weather Forecasting
Warning Protocols
Ministry of Home Affairs/ State Governments /Indian Meteorological Department/

Central Water Commission/ National Remote Sensing Agency/ Information and
Broadcasting/
Page 24

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 guideline s 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.
Page 26
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 dis aster
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
Page 27
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
Page 29
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 family. 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 medi cal
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.
Page 31
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.
Page 33
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.
Page 34
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 New India Assurance Company Limited Oriental
Insurance Company Limited United India Insurance Company Limited Export Credit
Guarantee Corporation` Agriculture Insurance Company of India Limited
www.nationalinsuranceindia.com www.niacl.com www.orientalinsurance.nic.in
www.uiic.co.in www.ecgcindia.com www.aicofindia.org www.bajajallianz.co.in
www.icicilombard.com www.itgi.co.in www.ril.com www.royalsun.com
Page 36
Private Sector::
Bajaj Allianz General Insurance Co. Limited ICICI Lombard General Insurance Co.
Ltd. IFFCO-Tokio General Insurance Co. Ltd. Reliance General Insurance Co. Limited
Royal Sundaram Alliance Insurance Co. Ltd.
TATA AIG General Insurance Co. Limited Cholamandalam General Insurance Co. Ltd.
Export Credit Guarantee Corporation HDFC Chubb General Insurance Co. Ltd. BHARTI-
AXA General insurance FUTURE GENERALI ICICI Prudential General Insurance AEGON
Religare General Insurance Ltd.
www.tata-aig.com www.cholainsurance.com www.ecgcindia.com
REINSURER::
General Insurance Corporation of India www.gicindia.com
Market
share
of
different
companies
ingeneral
insurance industry::
Table-2
Page 37
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::
Sche matics showing Methodological Steps
Page 38
Observations & Findings::
EXPERIENCE OF NATURAL DISASTER
32%
YES
68%
NO
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.
20%
14%
2%
VARIOUS TYPES OF DISASTER EARTH QUAKE
64%
HOUSEHOLD FIRE LAND SLIDES
WIND STORM
FIG:: 2
Page 39
FIG:: 3
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.
Disaster insurance coverage
12%
yes
88%
no
FIG::4 From this figure we can say only 12% people has disaster insurance coverage.
Page 40
FIG:: 5 Source: Questionnaire 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?
FIG:: 6 Source: Questionnaire 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.
FIG:: 7
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.
FIG:: 8
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.
Page 42
FIG:: 9 Source: Questionnaire 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 Below 30 Employee 31-40 Marital
status:: 41-50 Unmarried 51-60 Above 60 Married
Age Group (years old) :: Occupation:: Student
Self-Employed Graduate
Other, Specify……………….. Post-Graduate
Educational qualification::
Under 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 Dust Storm
Wildfire Household Fire Page 44

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
Page 45
11. Govt. of Uttaranchal should take some initiative to improve the awareness of
disaster insurance of the state. SD Other comments::
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
……………………………………………………………………………………………………… …………………………………………………………………………………………………………………
SA
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  http://www.afminetwork.org/fichiers/ressources/18.pdf
                  
http://www.proventionconsortium.org/themes/default/pdfs/IIASA_microfin_draft.pdf
http://www.ccsindia.org/ccsindia/policy/live/studies/wp0010.pdf
http://www.gdrc.org/icm/disasters/disaster.pdf
http://www.duryognivaran.org/documents/country%20papers/India%20Country%20Paper.p
df http://planningcommission.nic.in/aboutus/committee/wrkgrp11/wg11_disastermg.pdf
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_Disaster
Management_131.pdf http://india.gov.in/citizen/agriculture/natural_schemes.php
http://en.wikipedia.org/wiki/Category:Earthquakes_in_India
http://www.sristi.org/dmis/plan_manage
http://www2.unescobkk.org/elib/publications/103/disaster.pdf
http://data.undp.org.in/dmweb/pp/UNDP_IDPR%2045%20Versionweb.pdf
http://ndma.gov.in/ndma/hr/consultant.pdf
Page 47

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A report on

An analysis of POLICIES AND SCHEMES OF INSURANCE FOR DISASTER MANAGEMENT

By Joydeep mondal [09bsddu0033] Karvy stock broking ltd.

By Joydeep mondal [09bsddu0033]

Company guide Mr. abhishek mishra [area head- ksbl]

faculty guide prof. vinesh jain [faculty member-ibs dehradun]

KARVY STOCK BROKING LTD.

Mr. Abhishek Mishra [Area head—Karvy stock broking ltd.]

Prof. Vinesh Jain [Faculty member—IBS-Dehradun]

KARVY STOCK BROKING LTD.

KARVY STOCK BROKING LTD.

KARVY STOCK BROKING LTD.

Executive summary Objectives Introduction Company profile Company overview Disaster

KARVY STOCK BROKING LTD.

KARVY STOCK BROKING LTD.

KARVY STOCK BROKING LTD.

Reason behind the success of karvy::

KARVY STOCK BROKING LTD.

: Karvy Global is a leading business and knowledge process outsourcing Services

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

VARIOUS TYPES OF NATURAL DISASTER::

MAN MADE DISASTER::

VARIOUS MAN –MADE DISASTER::

Hazard vulnerability in india::

KARVY STOCK BROKING LTD.

WIND AND CYCLONES::

Increasing visibility and impacts of disaster::

KARVY STOCK BROKING LTD.

KARVY STOCK BROKING LTD.

Institutional Arrangements at District Level::

District Control Room Desk Offices And Officers in Charge

Site Operation centre Site Manager

KARVY STOCK BROKING LTD.

Pr. Secretary of Disaster Management

Commissioner Disaster Management

Disaster Management and Mitigation Center

Pr. Secretary of Disaster Management

Disaster Mitigation and Management Centre::

District Project Officer::

Initiatives for Earthquake Resistant Houses::

KARVY STOCK BROKING LTD.

Integration with Other Schemes::

Rina Sahay Yojana::

NATIONAL DISASTER MANAGEMENT FRAMEWORK::

Agencies/sectors to be involved and resource linkages

KARVY STOCK BROKING LTD.

(ii)Roles and responsibilities of the NEMA: -Coordinating multi hazard mitigation,

KARVY STOCK BROKING LTD.

States to enunciate Policy on Disaster Management .

KARVY STOCK BROKING LTD.

iii.EARLY WARNING SYSTEMS::

Ministry of Home Affairs/ State Governments /Indian Meteorological Department/

KARVY STOCK BROKING LTD.

Doordarshan/ All India Radio.

Disaster Management Act, 2005::

Institutional Framework under the Act:: National Disaster Management Authority

National Executive Committee (NEC)::

State Disaster Management Authority (SDMA)::

KARVY STOCK BROKING LTD.

National Institute of Disaster Management (NIDM)::

National Disaster Response Force (NDRF)::

KARVY STOCK BROKING LTD.

BASIC INSURANCE TERMINOLOGIES::