Lok Sabha Question No. 2930 (UNSTARRED), answered on 2016-12-02
Subject: Natural Catastrophe Insurance Pool
Ministry: FINANCE
Asked by: GOPAL CHINAYYA SHETTY

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 2930

TO BE ANSWERED ON 2 nd  December, 2016 / Agrahayana 11, 1938 (Saka)

## Natural Catastrophe Insurance Pool

†2930. SHRI GOPAL SHETTY:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government provides insurance cover/security to the victims whose houses destructed  during  the  natural  calamities  such  as  fire/floods/cyclone/  earthquake  etc. enabling them to reconstruct;
- (b) if  so,  the  details  thereof  along with the amount of central assistance provided during the last three years and the current year, Year/State/UT-wise;
- (c) whether  the  Government  proposes  for  an  Insurance  Catastrophe  Pool  and  the  said proposal is kept pending since many years;
- (d) if so, the details thereof and the reasons for pendency; and
- (e) by when a final decision would be taken in this regard?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI SANTOSH KUMAR GANGWAR)

(a) to (e): Subscription to house insurance is low in India. Lack of awareness would be one of the factors  behind  it.  In  India,  generally  Banks/Financial  institutions  stipulate  insurance  for  houses financed by them. Insurance education may help consumers to understand their needs, risks, and the  benefits  of  purchasing  insurance  for  managing  their  risks.  Insurance  Regulatory  and Development Authority of India (IRDAI) has informed that various insured people have covered their  dwellings  and  contents  against  natural  calamities  such  as  Storm,  Tempest,  Floods, Inundation  etc  under  Fire  and  /  or  Householders'  Policy  etc.  During  times  of  natural  calamities when  claims  are  made  for  covered  losses,  the  insurance  industry  facilitates  receipt  of  claim intimations,  appointment  of  surveyors  and  speedy  disposal  of  claims.  The  IRDAI  monitors  the disposal of the claims periodically in order to ensure efficient and quick disposal.

The  grants  under  State  Disaster  Response  Fund  (SDRF)/  National  Disaster  Response  Fund (NDRF) are released to State Governments on the recommendation of Ministry of Home Affairs for immediate relief necessitated to people in the wake of natural calamities like flood, drought etc. These grants are released as per the extant norms and some of the items of expenditure under SDRF/NDRF,  for  gratuitous  relief  are  agriculture  input  subsidy  for  loss  of  crops,  financial assistance for damage to houses/ dwellings, etc.

Government releases the assistance from National Disaster Response Fund (NDRF) to States in totality  on  the  recommendation  of  Ministry  of  Home  Affairs  (MHA),  not  component  wise.  The release of grants-in-aid from SDRF and central assistance in the wake of natural calamities from NDRF for the last three years and current year is annexed.

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Annexure referred to in reply to Lok Sabha Un-Starred Question Number 2930 for 02.12.2016

| Release of Fund under SDRF/NDRF during 2013-14 to 2016-17   | Release of Fund under SDRF/NDRF during 2013-14 to 2016-17   | Release of Fund under SDRF/NDRF during 2013-14 to 2016-17   | Release of Fund under SDRF/NDRF during 2013-14 to 2016-17   | Release of Fund under SDRF/NDRF during 2013-14 to 2016-17   | Release of Fund under SDRF/NDRF during 2013-14 to 2016-17   | Release of Fund under SDRF/NDRF during 2013-14 to 2016-17   | Release of Fund under SDRF/NDRF during 2013-14 to 2016-17   | Release of Fund under SDRF/NDRF during 2013-14 to 2016-17   | Release of Fund under SDRF/NDRF during 2013-14 to 2016-17   |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
|                                                             |                                                             |                                                             |                                                             |                                                             |                                                             | 2015-16                                                     | 2015-16                                                     | Rs. in Crore 2016-17 (as on 30.11.2016)                     | Rs. in Crore 2016-17 (as on 30.11.2016)                     |
|                                                             |                                                             | SDRF                                                        | NDRF                                                        | SDRF                                                        | NDRF                                                        | SDRF                                                        | NDRF                                                        | SDRF                                                        | NDRF                                                        |
| 1                                                           | Andhra Pradesh                                              | 520.89                                                      | 763.53                                                      | 230.85                                                      | 578.03                                                      | 330.00                                                      | 356.74                                                      | 173.25                                                      | 344.88                                                      |

2016-17

| 2   | Arunachal Pradesh   |   38.29 |   140.46 |   40.20 |   125.96 |   46.80 |          | 24.75   | 51.06   |
|-----|---------------------|---------|----------|---------|----------|---------|----------|---------|---------|
| 3   | Assam               |   68.77 |     0    |  425.97 |     0    |  414    |          | 217.35  |         |
| 4   | Bihar               |  290.41 |     0    |  304.93 |     0    |  351.75 |          | 184.50  |         |
| 5   | Chhattisgarh        |  128.25 |     0    |  134.67 |     0    |  249.73 | 522.31   | 94.88   | 313.39  |
| 6   | Goa                 |    3.74 |     0    |    3.99 |     0    |    3    |          | 1.50    |         |
| 7   | Gujarat             |  435.95 |     0    |  457.75 |     0    |  528.75 |          | 277.50  |         |
| 8   | Haryana             |  235.47 |     0    |  255.41 |     0    |  203.43 |          |         |         |
| 9   | Himachal Pradesh    |  136.24 |    95.84 |  143.06 |    65.3  |  212.4  | 82.22    | 111.60  | 81.22   |
| 10  | Jammu & Kashmir     |  423.93 |     0    |  278.5  |    43.53 |  229.5  |          |         |         |
| 11  | Jharkhand           |  225.26 |     0    |  236.52 |     0    |  273    |          | 143.25  |         |
| 12  | Karnataka           |  139.75 |   245.68 |  146.74 |   271.38 |  207    | 1645.53  | 108.75  | 606.98  |
| 13  | Kerala              |  121.51 |    61.74 |  119.5  |     0    |  138.75 |          | 72.75   |         |
| 14  | Madhya Pradesh      |  341    |   502.59 |  358.04 |    83.13 |  657.75 | 1011.99  | 345.38  | 863.81  |
| 15  | Maharashtra         |  567.38 |  1269.11 |  403.56 |  1426.95 | 1112.25 | 1592.96  | 583.88  | 1545.24 |
| 16  | Manipur             |    7.52 |     0    |    3.95 |     0    |   21.05 | 38.71    | 9.00    | 14.65   |
| 17  | Meghalaya           |   22.53 |     0    |   16.03 |    30.56 |   21.6  |          | 11.25   |         |
| 18  | Mizoram             |   13.15 |     0    |    9.36 |     0    |   15.3  |          | 8.10    |         |
| 19  | Nagaland            |    5.18 |    36.6  |    5.44 |    19.43 |    9    | 15.11    | 4.50    | 0.96    |
| 20  | Orissa              |  419.99 |   750    |  276.98 |     0    |  560.25 | 574.69   | 294.38  | 425.66  |
| 21  | Punjab              |  193.55 |     0    |  203.22 |     0    |  292.5  |          | 153.38  |         |
| 22  | Rajasthan           |  521.5  |     0    |  547.58 |     0    |  827.25 | 1378.13  | 868.50  | 990.82  |
| 23  | Sikkim              |   23.7  |     1.02 |   24.89 |     0    |   27.9  |          | 14.85   |         |
| 24  | Tamil Nadu          |  376.2  |   453.87 |  133.8  |     0    |  643.05 | 1000.00  | 267.38  | 365.67  |
| 25  | Telangana           |    0    |     0    |  153.9  |    18.51 |  205.5  | 468.20   | 108.00  | 328.16  |
| 26  | Tripura             |   29.7  |     0    |   21.12 |     0    |   27.9  |          | 14.85   |         |
| 27  | Uttar Pradesh       |  334.6  |     0    |  351.33 |   581.29 |  506.25 | 3305.66  | 265.88  | 1053.01 |
| 28  | Uttarakhand         |  145    |   329.5  |   64.3  |   216.81 |  253.36 |          | 99.00   |         |
| 29  | West Bengal         |  264.65 |     0    |  277.88 |     0    |  387    | 459.71   | 203.25  | 275.82  |
|     | Total Release       | 6034.09 |  4649.94 | 5629.45 |  3460.88 | 8756.01 | 12451.96 | 4661.66 | 7261.33 |