Role of Insurance in Disaster Management

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WORKSHOP ON ROLE OF INSURANCE IN DISASTER
MANAGEMENT
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Earth Quake Zone IV,V
Flood
Hot Wave
Drought
Cold Wave
BIHAR Prone to Multi Hazards
Fire
Thunderstorm Hailstorm
High Wind
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Bihar is Vulnerable to Multi-hazards

• 73 State area is prone to flood
• 17 of the countrys Flood area in Bihar
• 76 of North Bihar affected by flood annually
• Earthquake Zone-IV V
• Some districts of North Bihar as vulnerable as
  Bhuj and Kashmir
• Frequent change of river course
• Frequent Droughts
• High wind velocity in most parts
• Quite often hailstorms
• Recurrent village fires in summer months
• Cold wave

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FLOODS

• Rivers North Bihar- More
• damaging -Ghagra,
• Gandak, Burhi Gandak,
• BhgirathI, Kamla, Kosi
• and Mahananda
• Some rivers- Kosi have history of lateral shift
  course change
• Districts prone ( intensity wise)- Darbhanga,
  Munger, Purnea, Saran, Champaran, Begusarai,
  Bhagalpur, Bhojpur, Katihar, Madhubani,
  sitamarhi, Vaishali, Samastipur, Patna, gopaganj,
  Gaya, Siwan, Rohtas, Nalanda and Oranagabad.
• Annual damage to houses- 1,44000
• 1987- 13,98,000 houses damaged

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FLOOD SCENARIO

• Year-2002 2003 2004
  2005
• PERSON AFFECTED 158.18
  76.02 211.76 18.5
• (Lakhs)
• HUMAN LIVES LOST 482
  251 570 51
• DISTRICTS AFFECTED 25 24
  20 12
• LIVESTOCK LOST 1405
  108 1915 4
• HOUSES DAMAGED 3,96,644 45,262
  6,74,352 4,266

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SIGNIFICANT EARTHQUAKES IN BIHAR

• DATE Place MAGNITUDE
• 04 June 1764 Bihar WB Brd 6.0
• 23 Aug 1833 Nepal Brd 7.7
• 23 May 1866 Nepal Brd 7.0
• 23 May 1866 Jharkhand Bihar Brd 5.5
• 30 Sept 1868 Hazaribagh 5.7
• 07 Oct 1920 Bihar UP Brd
  5.5
• 15 Jan 1934 Indo Nepal Brd 8.0
• 11 Jan 1962 Indo Nepal Brd 6.0
• 21 Aug 1988 Bihar Nepal Brd 6.8

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TWO MOST DISASTROUS EARTHQUAKES- 1934 1988

• 15th JAN. 1934
• Intensity- 8.3
• Epicenter- Nepal, near Indian Border
• Life loss- India 7000
• - Nepal 8500
• Munger total ruined, Motihari, Muzaffarpur
  Dharbhanga destroyed.
• Liquefaction- 15000 sq kms area Houses sunk and
  tilted in ground
• Sand fountain sand boils- many places

• 20th Aug, 1988
• Intensity- 6.6
• Same area near border
• Life loss Injury-
• India 282 3766,
• Nepal 721 7300
• House loss
• India 150000
• Nepal 100000

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HYPOTHETICAL RECURRENCE 1934 E. Q.( North
Bihar 1981 census)

• Houses Damage
• Completely- 06, 13,000
• Partially - 11, 33,000
• Cracking - 20, 00,000
• Death in lakhs- depending upon season time
• Economic loss- colossal
• ( Source Prof A S Arya, Vulnerability
  Report)

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What Needed?

• Planning of human settlements with due
  consideration of likely future Hazards namely
  earthquakes and floods.
• Earthquake risk mitigation in urban
  Agglomerations.
• Ensuring Construction of all new building, the
  related infrastructure, and service buildings
  with adequate Earthquake and Flood Resistant
  Measure
• Retrofitting of existing buildings and structures
  for upgrading their earthquake resistance to the
  specified level.
• Getting Prepared for Post Disaster Response
• Establishing supporting institutional facilities
  for achieving above goals, including enforcement
  of techno-legal actions at local level.
• Strengthening of Institutional Mechanisms

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MEETING THIS NEED?

• Financing Mechanism
• Pre-Independence
• famine relief manuals,
• suspending/ writing- off land revenue.
• Post- Independence
• Advance plan assistance
• CRF and NFCR
• Rescheduling of bank loans.
• Crop insurance.

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IMMEDIATE RELIEF vs. RECONSTRUCTION

• CRF and NCCF - for immediate relief
  rehabilitation.
• Reconstruction of assets and restoration for
  infrastructure, financed through
• Budgetary sources
• Reallocation of plan fund
• Inadequacy of CRF/NCCF
• DIVERSION OF RESOURCES FROM DEVELOPMENT
  EXPENDITURE

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NEW INITIATIVES

• Part of plan expenditure for mitigation
  activities
• ( HPC- 10 for DM in Plan Expenditure)
• Promoting adequate risk transfer/ risk sharing
• (INSURANCE FOR DRM)
• State Insurance Fund.
• Rural insurance schemes
• Private sector insurance.
• Insurance of houses reconstructed

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OBJECTIVES OF WORKSHOP

• Discuss the role and significance of Insurance
  Sector for DM in hazard prone areas in Bihar.
• To chalk out a coordinated strategy for life and
  property insurance
• Collaboration and coordination with various
  stakeholders for formulating implementing
  Appropriate insurance scheme.

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EXPECTED OUTCOME

• Awareness about various insurance schemes for DRM
• Policy advocacy for natural hazards related
  insurance schemes
• Role of various Insurance agencies in
  facilitating Insurance for DRM
• Affordability of insurance for those who need it
  the most.
• Public Private partnership in insurance
• Degree of participation by the government for
  Insurance.
• Micro insurance
• Working out the Specific Schemes for
  Comprehensive Life Property Insurance Scheme
  for the Disaster Prone areas of Bihar State.

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THANK YOU