KOHIMA, MARCH 21 (MExN): Nagaland has successfully settled its first claim under the Disaster Risk Transfer Parametric Insurance Solution (DRTPS), marking a significant milestone in disaster resilience and risk financing in the state.
The Nagaland State Disaster Management Authority (NSDMA), under the Home Department, conducted a formal ceremony to announce the settlement of the Cover 1 Claim for the Monsoon Period of 2024-2025. The event was attended by Advisor to NSDMA & NRE, Z. Nyusietho Nyuthe, as the special guest, alongside Commissioner & Secretary and officials of NSDMA, as well as representatives from SBI General Insurance, including Piyush Kumar Singh, Sandeep Mukherjee, Subhankar Mazumder, and Luntsuba.
The settlement follows a multitier agreement signed between NSDMA and SBI General Insurance in 2024 to implement the DRTPS, an innovative insurance mechanism designed to enhance disaster preparedness. The claim settlement under Cover 1 amounts to Rs 1,06,50,000, which will be distributed to beneficiaries affected by the Monsoon 2024 through the Decentralised Relief Payment System (DRTPS), a digital payment gateway developed by NSDMA.
Nyuthe lauded the leadership of the Chief Minister and NSDMA Chairman for implementing the initiative. "The leadership of the Chief Minister and Chairman NSDMA for his far-sighted and future-looking project that has been implemented under his par excellence leadership," the NSDMA stated.
He also emphasized the role of parametric insurance in mitigating climate-related risks, stating, "Amidst the increase in climate variabilities, a Parametric Disaster Risk Insurance Solution is one of the parts to achieve sustainable development."
According to NSDMA, the implementation of the DRTPS in Nagaland represents a pioneering effort in parametric disaster risk transfer insurance, both within India and globally. "The story of Nagaland venturing into Disaster Risk Transfer Parametric Insurance Solution (DRTPS) is the spark in the history of Parametric Disaster risk transfer insurance in the country and around the globe," the NSDMA stated.
The organization highlighted that the initiative has already made an impact on India’s risk financing framework, stating, "DRTPS of Nagaland has positively impacted the risk financing mechanism in India with a special provision that will be incorporated in the 16th Finance Commission."
The NSDMA further described the claim settlement as a historic moment, saying, "The claim settlement of Cover 1 under the DRTPS is a golden letter day in the Parametric Insurance history. This innovative Nagaland Disaster Risk Transfer Parametric Insurance Solution will be referred to by many scholars in the field of Insurance in the days to come."
The settlement was framed as part of a broader narrative positioning Nagaland as a leader in parametric insurance solutions. "Nagaland has yet another story to tell to the world, a small but significant story on parametric disaster risk insurance solutions. Nagaland is one of the first dots in the country and in the world," NSDMA stated.
With the claim now settled, the allocated funds will be directly disbursed to beneficiaries through NSDMA’s digital payment system, ensuring swift relief to those impacted by monsoon-related disasters in 2024.
