Nagaland signs pioneering insurance deal with SBI General to boost disaster resilience

To enhance disaster management, SBI General Insurance and the Nagaland State Disaster Management Authority (NSDMA) have inked a Memorandum of Understanding (MoU) to implement a Parametric Insurance Solution. This agreement, effective for three years, aims to bolster Nagaland's resilience against natural disasters by providing a comprehensive insurance coverage tailored to the state's unique needs.

The Nagaland Disaster Risk Transfer Parametric Insurance Solution (DRTPIS) will cover extreme weather events, including excess and unseasonal rainfall. The parametric insurance is designed to expedite financial recovery by triggering payouts based on predefined weather parameters, thus reducing the recovery time after natural calamities.

Nagaland, one of India's most disaster-prone regions, has seen a sharp rise in climate-related incidents, with a 200% increase reported from 2018 to 2021. The new insurance solution is expected to significantly mitigate the financial impact of such events.

Naveen Chandra Jha, Managing Director and CEO of SBI General Insurance, emphasized the importance of this initiative, stating, "In recent years, India has faced numerous natural disasters. This parametric insurance will offer crucial support by ensuring timely compensation and aiding in quicker recovery."

Nagaland's Chief Minister Neiphiu Rio, expressed enthusiasm about the partnership, calling it a pioneering step in disaster risk management. "This initiative will help us build a robust disaster response system, ensuring effective support during emergencies," he said.

The event was attended by prominent figures including Vyasan R, IAS – CEO & Home Commissioner, and senior delegates from SBI General Insurance, among others.