A Report On

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]
Compan y guide Mr. ab hishek mishra [area head- ksbl]
faculty guide prof. vines h jain [faculty member-ibs dehradun]
KARVY STOCK BROKING LTD.
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Authorization
This summer i nternship progra m has been conducte d for pa rtial fulfillment of MBA -prog ram at IBS-Dehradun. Summe r Internship Program also included a project work on an analysis of policies and schemes of insurance for disaster management. Karvy Stock B roking Limite d-Dehradun and IBS-De hradun here by authorize Mr. Joydeep Mondal to conduct his research dissertation under Mr. Abhishek Mishra, Area head, Karvy Stock B roki ng Ltd.Dehradun and Prof. Vinesh Jain, Faculty me mber starting from date: 15th February, 2010 to 14th May, 2010. A complete re port of research findings will have to be provide d to Karvy Stock Broking Limited Dehradun.
Mr. Abhishek Mishra [Area headKa rvy stock broking ltd.]
Prof. Vinesh Jain [Faculty membe rIBS-Dehradun]
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Certificate by the organization::
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ACKNOWLEDGEMENT
Sometimes words fall short to show gratitude, the same happe ned with me during this project. The immense help and support received f rom Ka rvy stock broking limited ove rwhelmed me during the project. As I sum up draft of my study, I appreciatively remi nisce the contribution of all those people without whose support and help, this study woul d have never take n its present form. My sincere gratitude to Mr.Abhishek Mishra (area head , Dehradun, Karvy Stock Broking Ltd.) and Dr. Sanjeev Malavia (Placement Coordinator, IBS de hradun), for providing me with an opportuni ty 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 provi ded 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 g rateful 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 thankf ul to that power that always inspires me to take right step in the journey of succes s 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 e ntry of private players in insurance field, the Indian insurance sector has started showing signs of significant change. Within a short span of ti me, private insurance has acquired a great market share of i nsurance marke t. 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 Dehra dun about disaster insurance. What t hey think about disaster insurance, is it really effective to recove r the damages caused by disaster. How many of the m have disaster insurance cove rage, as we know that Uttaranc hal state is very disaster prone. Apart f rom that the report also considers the curre nt state of insurance market. Presently how many c ompanies are in gene ral insurance business, and also the market share of different companies. It also contains the administrative structure & their prepare dness for disaster management in Utta ranchal and national disaster management frame work of India.
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Objectives::
Project will help to make pe ople more aware about various products of differe nt insura nce companies. This study will help to know the marke t situation of disaster insurance in Dehr adun. The main objectives of the studies are as follows:: The awareness of disaster insurance of the people of de hradun 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 prepa redness for disaster management in uttaranc hal. To study the activities; and various policies and schemes of disaster management provided by governme nt of uttaranchal. To study national disaster management f ramework.
Introduction::
A contract betwee n two parties is known as Insurance. Shifting or transferring of risk of loss or damage, from owne rs and the reby sharing of l osses by all the me mbers of the group are main unique ness. Thus a contract of i nsurance is a contract by which one party undertakes to make good the loss of anothe r, in consideration of a sum of mone y, on the happe ning of a specified event. For example fire, accident or death. Since liberalization in 2000, the Indian i nsurance sector has become a buye rs 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 companys products. They can reach every customer whatever custome r needs.
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Company profile::
Compan y overview::
Karvy was established as karvy and company by five charte red 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 i ts first milestone after its first investment in technology. Karvy became a known na me duri ng the year 1985-86 when it forayed into capital marke t 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. Unde r this section we will see that how this karvy and company of 1980 became karvy of 2008. Karvy bl ossomed 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 eme rging rathe r potential field too i.e; stock broking. It a dded the feather of stock broki ng into its cap. At the same time it became the membe r of Hyde rabad Stoc k Exchange through associate firm karvy securities ltd and then karvy ne ver looked back..it went on adding services one after another, it entere d into retail stock broking in the yea r 1990. Ka rvy investor service cente rs we re set up in the year 1992. Karvy which already enjoye d a wide network through its investor service centers, entered into financial product distribution services in the year 1993. One yea r more and karvy was now dealing into mutual fund services too in the year 1994 but it didn t stopped the re, it steppe d into corporate finance and investment banking in the year 1995. Karvys 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 awa rded I SO 9002 in the year 1997. T hen it stepped into the othe r 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 we bsite www.karv y.com . Then it entere d into insura nce services i n the year 2001 with the launc h of its re tail arm ka rvy- 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 prov ides the m with other financial services. In the year 2003, it commence d secondary debt and WD M trading. It was a decade which saw many I ndian companies going global..so why the largest financial
service provi der of I ndia should lag behind? Hence, karvy la unched karvy global services limited after enteri ng into a joint venture with Computershare, Australia in the year 2004.the year 2004 also saw karvy entering into commodities marketi ng 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 li mited, PCG group of H ong Kong acquired 25% stake at KSBL. In the yea r 2006, karvy entere d into one of the hottest sector of present ti me i.e real estate through Karvy realty& services (India) ltd. hence , we can see now karvy being established as the lagest financial service provide r 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 provide r to our custome rs, and we aim to achieve this leadership position by building an innovative, ente rprising , and technology driven organization which will set the highest standards of service and business ethics .
Now karvy group cons ists of 10 highly ren owned entities which are as follow::
: The first securities registry to receive ISO 9002 certification in I ndia. Registered with SEBI as Category I Registrar, is Number 1 Registrar in the Country. The a ward of being Most Admi red Registrar is one among many of the acknowledgeme nts that Karvy received for custome r friendly and compete nt services. : karvy stock broking ltd. Consists of five units namely stock broking servics, depository participant, advisory services, distribution of financial produc ts, advisory services and private client goups.
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:: Ka rvy Financial Services Ltd. is a wholly owned subsidiary of Ka rvy Stock Broking Ltd. Karvy Stock Broking Ltd a me mbe r of the National Stock Exchange of I ndia and the Bombay Stock Exchange, ranks among the top 5 stock broke rs in India. With ove r 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 Banke r has emerged as a leading Investment Banking entity in the country with ove r a decade of experience. KISL has built its re putation 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 provide d to retail individuals, high net-worth clients and corporates. : The compa ny provides investme nt, advisory and broke rage services in Indian Commodities Marke ts. And most importantly, it offe r 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 Compa ny offering creative business solutions to clients globally. It operates in banking a nd 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 (I ndia) 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 fra mework.
: it is a joint venture be tween Computershare, Australia and KarvyConsultants Limited, India in the registry management services industry.
DISASTER::
WHAT IS DISAS TER::
Disaster is the tragedy of a natural or huma n-made hazard (a hazard is a situation which poses a level of threat to life, health, prope rty, or envi ronme nt) that negatively affects society or environme nt.
CLASS IFICATION::
Disaster can bi classified into two categories viz. NATURAL DISASTER and MANMADE DISASTER.
NATURAL D ISASTER::
A natural disaster is a consequence when a natural haza rd (e.g., volcanic eruption or ea rthquake) affects humans. Human vulnerability, caused by the lack of appropriate eme rgency manageme nt, 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 ove r icesheets or snowfields. 4. FLOODS:: A flood is an overflow or accumulation of an expanse of wate r that submerges land. 5. LANDSLIDES:: A landslide or landslip is a geological phenomenon which includes a wide
range of g round move ment, 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. Gene rally, this occurs when a region receives consistently below average precipitation
MAN MADE D ISASTER::

Disasters caused by human action, negligence, error, or involving the failure of a system are called manmade disasters. Man-ma de 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 D ISASTER::

1. STAMPADE:: A stampede is an act of mass impulse among herd ani mals or a crowd of pe ople 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(Me dvede v-Sponheuer- Karnik) I X 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.
In creasin g visibility and impacts of disaster::

Natural disasters are increasingly making headline news, due to the impact of mode rn communications and connectivity, and the proliferation of TV and news media. There is hardly any part of the globe, whe the r Asia, Africa, Oceania or elsewhere which is really free from natural disaster of one kind or the othe r. Painful tales of what the y mean are told to us eithe r 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 de rail 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 ove r 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 winte r storms in Europe in 1990, Typhoon Mi reille in Japan in 1991, Hurricane Andrew i n Florida in 1992, the earthquakes in California in 1994 a nd Kobe in 1995; 1998 was the year of largest numbe r of events and highest damages cost and witnessed floods as most notable events. Seve re 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 Octobe r. The recent supe r cyclone in Orissa (1999), a catastrophe claiming more than 10,000 lives and recently the earthquake of Gujarat in the ne w millennium are the most tragic events that have shaken up the worl d. 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 numbe r of catastrophes in the decade) indicate that 50 pe r cent of the eve nts are earthquakes and windstorms and these have been higher in the Americas (255) compare d to 202 in Asia. While the occurrence of numbe r of eve nts is highest in the Americas, numbe r of deaths occurring due to these events have bee n higher in Asia, i.e. 34,303 as compared to 14,995 in the Ame ricas. Economic losses due to earthquakes and windstorms is highest in the Ame ricas 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 develope d countries than developing countries; and Number of deaths is much more in Asia than America. The main reasons for such dramatic increases are: The concentrati on of population is constantly growing in a numbe r of large cities, which are often located in high-risk zones; Greater susceptibility of mode rn industrial societies to catastrophes; and Accelerating deterioration of natural environme ntal conditions.
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Administrative Structure for Disaster Management in Uttaranchal::

Shortly, afte r 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::
Ins titutional Arran gements at Dis trict Level::

DMMC District Magistrate/ District Disaster Manager Police Civil Hospital PWD Corporation RTO DSO Others
Operation Desk Service Desk Infrastructure Health Desk Logistics Desk Agri Desk Information and Communication
District Control Room Desk Offices And Officers in Charge
Site Operation centre Site Manager
Transit Camp
Relief Camp
Cattle Camps
Feeding Centres
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Ins titutional arran gements at state level::

Ministry of Disaster Management
Pr. Secre tary of Disaster Management
Commissioner Disaster Management
Disaster Management and Mitigation Center
Pr. Secre tary of Disaster Management
Disas ter 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 f rom relief to rehabilitation and development. DMMC has a well structured f rame work to carry out its activities. It involves three f ocallayers of participatory organizations. 1. State level: Ministry/department of disaster management through State e mergency Operations Group under the control of Principal Secreta ry/ Commissioner, disaster management. 2. District level: District ,Magistrate through District Emergency Operations Group unde r the control of District Disaster Manager. 3. Local level: Tehsil/Block/Village through Site Operations Centre unde r 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 experience d 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 adopte d for five years from its inception.
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These include:: Setting up of State E mergency Operations Group. Setting up of District Emergency Operations Group Institutional Strengthe ning and Coordi nation Stre ngthening of Village Disaster Interve ntion team. Creation and strengthe ning 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 Utta ranchal and Consultancy.
Dis trict Project Officer::

Amongst the va rious 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 Prog ram of Government of India-United Nations Developme nt Progra mme [UNDP]. This progra m aims to contribute towards the social and economic devel opment goals of the nati onal and state Governments by enabling the m to programme is being implemented in 8 districts of Uttaranc hal 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 wi th 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 governme nt functi onaries. Help the District administration Block for selection of partners for the Community Based Disaster preparedness work. Helping in developme nt of awa reness campaign strategy and awareness generation activities like street plays, rallies, painting and drawing compe titions amongst school children on disaster prepare dness. Supporting in the training and capacity building progra mme of governme nt 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 governme nt officials, PRIs, NGOs/CBOs, youth clubs. Coordina ting and facilitating training programmes for disaster manageme nt task forces formed a t vari ous levels on Health and First Aid, Searc h and Rescue Operation, Sanitation,
Shelter Management, Carcasses & Garbage disposal, use of early warning equipments IEM! radio ope ration etc. Establishing linkages with Civil Society Response group at va rious levels for emergency response plan development. Networking with NGOs/CBOs/NCC/NSS and othe r agencies working in the field of Disaster Management for unification of the strategy and process. Assisting the Collector and District Magistrate in perf orming all activities related to disaster management. Regular reporting to the Collector State Nodal Agency and State Project Officer on the prog ramme 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 I nformation dissemination.
In itiatives for Earthquake Resis tant 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 constructi ng these houses. Thus, it is felt today that all houses in Uttaranc hal should be earthquake resistant. Constructing a new house is an expensive preposition and more so in the hilly te rrains as it is difficult to transport modem construction equipme nts and artic les in these regions. Moreover, construction activities lead to envi ronme ntal degradation which is a pote ntial threat in the region. I n this context, it becomes impe rative to re pair 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 re paired and retrofitted accordingly, while, the new structures should be constructed as per the earthquake resistant techniques. With the help of mode m day techniques, the old houses can be converted into earthquake resistant houses without demolishing them e ven the re is no nee d to re move the roofs. It is not requi red that houses should be of brick, ceme nt and i ron 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 Retrof itting of Ex isting Houses::

The house owne rs 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 be tte r. There is little or no knowledge in the public about the alternate afforda ble technologies. Nor do the pe ople know that their vulnera bility to f uture disasters can be re duced 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 va rious categories of damage as G-l, G-2, G-3, G-4. and has developed de tailed 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 construc ted 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 techni ques. Now, earthquake like situa tion was created by hitting the platform with a tractor. It was shown that Retrofitted house withstand such c ollisions. The total expe nditure in Retrofitting. is just 15% of constructing a new house. This experiment is being given wide publicity through pa mphlets and training progra mmes to build up acceptability and confide nce of the masses . DMMC has prepared booklets for local masons in Hindi language. These booklets are prepare d after taking into account the expe riences of Lattur in Maharashtra, Jabalpur in MP and Uttaranc hai state's own house construction me thods. 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 numbe r 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 aware ness and technology at the bottom level DMMC has organized training camps for the Masons. One such camp was held in the district Rudraprayag from 28t h Ma rch to 31st Ma rch
2004. In this camp, 35 masons from differe nt villages were trained by expe rts in building earthquake resistant structures and re trofitting techniques. In the training, a model of differe nt retrofit techniques was constructed. I t consisted of traditional as well as modem design of construction a nd their retrofitti ng. 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 gene rations and will ensure the sustainability of the process. At the district level, a computerize d database of trained masons and construction worke rs is being created. Till date, 800 masons have been registered in the database.
In tegration with Other Schemes::

DMMC is also exploring the possibilities of integrating disaster preparedness and mitigation efforts with other gove rnment schemes.
IAY::
Unde r this scheme government provides assistance to weaker and marginalized sections of society to construc t houses. DMMC is trying that all houses to be construc ted 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 whe re a BPL family who lost their house due to sinking of the g round was provided a house unde r lAY.
Rina Sahay Yojana::

Unde r this scheme, Gove rnment 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 MECHANIS MS::
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, Environme nt and Forests, Agriculture, Railways, Atomic Energy, Defence,
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Nodal agency for disaster management at the national level with appropriate systems
(ii)Roles and responsibilities of the NEMA: -Coordinati ng multi hazard mitigation, preve ntion, prepa redness and response prog rams. - Policies for disaster risk reducti on and mitigation -Prepare dness at all levels. -Coordinati on of response -Coordinati on of post disaster relief and rehabilitation. -Amendment of existing laws, proce dures, instructions. Ministries/ Departme nts of Health, Water Resources, Environme nt and Forests, Agriculture, Railways, Atomic Energy, Defence, Chemicals, Science & Technology, Rural Developme nt, Road Transport & Highways Etc. Setting up State Disaster Management Authorities (i) State Disaster Management Authority to be headed by the Chief Minister. (ii) The Authority to lay down policies and monitor mitigation, preve ntion and prepa redness as also oversee response.
Chemicals, Science & Technology, Rural Developme nt, Road Transport & Highways etc.
Ministers for Agriculture, Home, Disaster Management, Water Resources, Health, Road & Transport, Civil Supplies, Environment & Forests, Rural Developme nt, Urban Developme nt 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 Parliame nt 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 States to enunciate Policy on Disaster Management . (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 Gove rnments Ministry of Home Affairs/ Ministry of Law (Legislative Department) Ministry of Home Affairs State Gove rnments Ministry of Home Affairs, Ministry of Finance, Planning Commission, Ministry of Environme nt & Forests, Rural Development, Urban Developme nt and othe r relevant Ministries to be consulted.
State Gove rnments
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prepa redness and planning measures at all levels from community to State, constitution of Emergency Support Teams /Disaster Management Teams /Committees /State Disaster Management Authori ties, delegation of administrative and financial powers to disaster incident managers etc, protoc ol to update the inventory of resources and plans.
iii.EARLY WARNING SYS TEMS::

(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 protoc ols to be user friendly. (ii) Warning to be communicated as quickly as possible to the States/districts/community. (iii) Protoc ols should be simple to unde rstand. (iv) Districts to set up protocols for Indian Mete orological Department/ Central Water Commission/ National Centre for Medium Range Weather Forecasting
Warning Protocols
Ministry of Home Affairs/ State Governments /Indian Meteorol ogical Department/ Central Water Commission/ National Remote Sensing Agency/ Information and Broadcasting/
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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.
Disas ter Managemen t 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 fra mework is expected to usher in a paradigm shift in D M f rom relief-centric approach to a proactive regime that lays greater e mphasis on prepa redness, preve ntion and mitigation.
Ins titutional Framework under the Act:: National D isaster Management Authority (ND MA)::
The NDMA, as the apex body f or disaster management, is headed by the Prime Minister and has the responsibility for laying down policies, plans and guidelines for DM and coordi nating their enforce ment and implementation f or ensuring timely and effective response to disasters. The guidelines will assist the Central Ministri es, Departments and States to formulate their respective DM plans. It will approve the National Disaster Management Plans and DM plans of the Central Ministries/Departme nts. It will take such other measures, as it may consider necessary, for the preve ntion of disasters, or mitigation, or prepare dness and capacity building, for dealing with a threate ning disaster situation or disaster. Central Ministries/Departments and State Governme nts will extend necessary coope ration and assistance to NDMA for carrying out its mandate. It will oversee the provision and application of funds for mitigation and pre paredness measures. NDMA has the powe r to authorise the Departments or authorities concerne d, to make eme rgency proc ure ment 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 Manageme nt (NID M) works within the fra mework of broad policies and guidelines laid down by the NDMA. The NDMA is mandate d to deal with all types of disasters; natural or manmade. Whereas, such
othe r eme rgencies including those requiring close involvement of the security forces and/or intelligence agencies such as terrorism (counte r-insurgency), law and order situations, serial bomb blasts, hijacking, air accidents, CBRN weapon systems, mine disasters, port and ha rbor e mergencies, forest fires, oilfield fires and oil spil ls will continue to be handled by the ex tant mechanism i.e., National Crisis Management Committee (NCMC).
National Executive Committee (NEC)::

The NEC comprises the Union Home Secreta ry as Chairperson, and the Sec retaries to the Govt. of India in the Ministries/Departments of Agriculture, Atomic Ene rgy, Defence, D rinking Wate r Supply, Environme nt and Forests, Finance (Expenditure), Health, Power, Rural Developme nt, Science & Technology, Space, Telecommunications, Urban Development, Water Resources and the Chief of the Integrated Defence Staff of the Chiefs of Staff Committee as me mbe rs. Secretaries in the Ministry of External Affairs, Earth Sciences, Human Resource Developme nt, Mines, Shipping, Road Transport & Highways, and the Secreta ry, NDMAwill be special invitees to the meetings of the NEC. The NEC is the executive committee of the ND MA, and is mandate d 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 prepa re the National Plan for Disaster Manageme nt based on the National Policy on Disaster Management. The NEC will monitor the imple mentati on of guideline s issued by NDMA. It will also perf orm such other func tions as may be prescribed by the Central Government in consultation with the ND MA.
State D isaster Management Authority (SDMA)::

At the State level, the SDMA, heade d by the Chief Minister, will lay down policies and plans for D M in the State. It will, inter alia approve the State Plan in accorda nce with the guidelines laid down by the ND MA, c oordinate the i mple mentati on of the State Plan, recomme nd provision of f unds for mitigation and prepa redness measures and review the developme ntal plans of the differe nt Departments of the State to ensure the integration of pre vention, prepare dness and mitigation measures. The State Gove rnment shall constitute a State Executive Committee ( SEC) to assist the SDMA in t he performance of its functions. The SEC will be headed by the Chief Secretary to the State Gove rnme nt and coordina te and monitor the i mple mentati on of the National Policy, the National Plan and the State Plan. The SEC will also provide information to the ND MA relating to different aspects of DM.
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Dis trict Disas ter 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, coordinati ng and implementing body f or D M at the District level and take all necessary measures for the purposes of DM in accordance with the guidelines laid down by the ND MA and SD MA. I t will, inter alia prepare the District DM plan for the District and monitor the impleme ntation 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 pre vention, mi tig ation, prepa redness and response measures laid down by the ND MA and the SD MA are f ollowed by all the De partments of the State Gove rnme nt at the District level and the local authorities in the District.
Local Authorities::
For the purpose of this Policy, local authorities would include Panc hayati Raj Institutions (PRI), Municipalities, District and Cantonme nt Boards, and Town Planning Authorities which control a nd manage civic services. These bodies will ensure capacity building of thei r officers and e mploy ees for managing disasters, carry out relief, re habilitation and reconstruction activities in the affected areas and will prepare D M Plans in consonance with the guidelines of the NDMA, SDMAs and DDMAs. Specific institutional framework f or dealing with dis aster management issues in mega cities will be put in place.
National Institute of D isaster Managemen t (NIDM)::

The NIDM, in partne rship with other research institutions has capacity development as one of its major responsibilities, along with training, research, documentation and developme nt 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 othe r stakeholders. The NIDM will strive to e merge as a Centre of Excellence in the field of Disaster Management.
National D isaster Response Force (ND RF)::

For the purpose of specialised response to a threatening disaster situation or disaste rs/ emergencies both natural and manmade such as those of CBRN origin, the Act has mandate d the constitution of a National Disaster Response Force (NDRF). The gene ral superintende nce, direction and control of this force shall be vested in and exercised by the NDMA a nd the comma nd and supervision of the Force shall vest in an officer to be appointed by the Central Governme nt as the Director Gene ral of Civil Defence and National
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Finan cial Arrangemen ts:: National D isaster Response and Mitigation Funds::
A National Disaster Response Fund may be constitute d 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 c onsultation with the ND MA. The proposal for merging the Nati onal Calamity Contingency Fund (NCCF) with the National Disaster Response Fund shall be as recommended by the Finance Commission from ti me to ti me. Similarly, as mandated by the Act, the National Disaster Mitigation Fund (ND MF) may be c reated for projects exclusively for the purpose of mitigation. The NDMF shall be applied by the ND MA 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 precautiona ry measures to preve nt the unforeseen and unfortu nate events. Even then , accidents do occur. Therefore to c over such incide nts we re quire insura nce . This occurrence has to be random, accidental and not the deliberate creation of the insure d 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 a re rei mbursed. I n 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 combine d in a group through small individual contributions out of which those who suffer losses ar e reimbursed. Legally insurance is a contract between the insurer and the insure d whe re by in consideration of payment of the pre mium by i nsured , the insure r agrees to make good a ny financial loss the insured may suffer due to the ope ration of a peril ins ured The policy which is a docume nt issued by the insure r is evidence of the contract. A contract of insurance does not unde rtake to prevent the occurrence of the pe ril insured against. What it provides is a promise to make good the financial loss caused by the ope ration of the insure d peril.
BASIC INSURANCE TERMINOLOGIES::

Insured:: The person known as the policyholde r, a person with insurance cove rage. Insurer::
A company licensed to transact the business of insurance and issue insurance policies . Policy:: It's the writte n contract betwee n an insurance company and its insured. I t defines what the company agrees to cover for what pe riod of time and describes the obligations and responsibilities of the insured. Premium:: It's the amount of mone y 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 c ollect more than the actual cash value of a loss but should be restore d to approxi mately the same financial position as existed before the loss. Broker:: An organization or pe rson paid by the policyholde r 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, othe r than the first due date, during which an overdue premium may be paid. All provisions of the policy remain in f orce throughout this period Limit:: It's the maximum amount paid by the insurance company unde r the te rms 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 characteri stics are grouped togethe r and are charged a premium based on the group's level of risk.
GENERAL INSURANCE::
Insurance othe r than Life Insurance falls under the category of Ge neral Insurance. Gene ral Insurance comprises of insurance of prope rty against f ire, 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. ove r the last 5 years. There is a vast business potential that lies untapped, as more and more cities enter the developme nt phas e. Mr. Yogesh Lohiya, Chairman-cum-Managing Director of gic
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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 pe rsonal accident policies. To buy a policy the pe rson 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 c over prope rty against fire and allied perils, flood, storm and inundation, earthquake and so on. There are products that cove r prope rty against burglary, theft etc. The non-life companies also offers policies covering machine ry against breakdown, the re are policies that cover the hull of ships and so on.
IMPORTANCE OF GENERAL INSURANCE::

General insurance c over is necessary for eve ry fa mi ly. It is important to protect ones property, which one might have acqui red f rom ones hard ea rned i ncome. A loss loss or da mage to ones property can leave one shattere d. 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 cove red , so also the people against personal accidents. A health insurance policy can provide financial relief to a person undergoing me di cal treatme nt whether due to a disease or an injury. Industries also need to protect the mselves by obtaining insurance covers to protect their building , machinery, stocks etc. They need to cove r thei r liabilities as well. Financiers insist on insurance. S o ,most industries and businesses that are financed by banks and other institutions do obtain cove rs. But are they obtaining the right covers? And are they insuring adequately are questions that need to be given some thought. Also organizations or industri es that are self-financed should ensure that they are protecte d by insurance.
Need for insurance in d isasters::

In the Indian context where people below the pove rty line a re high and pe r 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 comme rcial 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. T his means that survivors of the quake are faced with the bleak prospect of not getting a penny for what most would have regarde d a rock solid investment, built
with a lifetimes savings. The irony is that earthquake insurance is avail able 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 thi rd party insurance is compulsory, insurance against calamities earthquake, flood or fire must also be made compulsory. It already is in most develope d countries where prope rty is separately insured against different kinds of risk depending on the location and exposure to the risk in questio n 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 cha rity, but would i nstead be able to face the prospect of their immediate state of homelessness with greater equani mit y, secure in the knowledge that they will receive compe nsation once the y 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 construc tion, since insurance companies, anxious to limit their liability, will insist on certain mini mum standa rds being me t. For the same reason, they will also be compelled to draw up zoning maps, de marcating areas as flood/earthquake/ cyclone prone and accordingly tailor policies to the re quire me nts of each area instead of having the current one -size-fits-all approach. The insurance industry has at its disposal comprehe nsive worldwide l oss experience which it uses not only in calculating pre miums 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 i nsurance industry is known to have extensive information in the f orm 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 preve ntion; efforts today are shifting more and more to the a rea of natural hazards, whe re there a re many possibilities for loss prevention, which hithe rto have scarcely been tapped.
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Some
of
the
important
milestones
in
the
general insurance business in ind ia::

1907:: The Indian Me rcantile Insurance Ltd. Set up , the first company to transact all classes of general insurance business. 1957:: Gene ral Insurance council , a wing of the Insurance Association of India, frames a code of conduc t for ensuring fair conduc t and sound business practice s. 1968:: The Insurance Ac t ame nde d to regulate investments and set mini mum solvency margins and the tariff Advisory Committee set up. 1972:: The Gene ral Insurance Business (Nationalization) Act,1972 nationalized the gene ral insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into f our companies viz. the National insurance company ltd.,the new india assurance company ltd., the oriental insurance company ltd., and the unite d india insurance company ltd. GIC incorpora ted as a company.
BOD IES THAT REGULATE THE SECTOR::

For be tter regulation purpose of the insurance sector the governme nt has established following bodies:
1. IRA:: Insurance Regulatory Authority::

The IRA, under the c hairmanship of Rangachary, was set-up in January 1996. The IRA Bill has to be passed by parliame nt to make the IRA a statutory body. Compre hensive 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 unde r the IRDA Act, 1999, provide for the establishment of an authority to protect the interest policyholders, to regulate, promote and ensure orde rly 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 characte r of manageme nt, 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 unde r 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 pe rcent of the total gross
pre mium written in India in any financial year, not exceeding Rs.10 crores .
In vestment of Assets:Every insurer is require d 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 investme nt rate d as very strong or more by reputed rating agencies, which include various debt instrume nts on which dividend on its ordinary shared for the five years imme diately preceding or for at least five out of the six or seven years imme diately preceding have been paid and which have priority i n payment ove r ordina ry shares of the company in winding up.
3. TAC:: Tariff Ad visory Committee::

The tariff advisory committee established under the Act is empowere d to control and regulate the rates, terms, and e tc. that may be offere d by insure rs 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. Eve ry insure r is requi red to make payme nt to the TAC of the prescribed annual fees.
Pres ent s ituation of General Insurance in India::

The Indian insurance sector is rapidly moving towards international standards of free (risk -based) marke t pricing and new/innovative product offeri ngs. Big changes have occurre d ove r the last few years, during which the sector was opened to private pa rticipation, along with foreign direct investment (FDI) capped at 26%. India is the 5th largest market in Asia by pre mium, following Japan, Korea, China and Taiwan. The country is geographically large and has the worlds 2nd largest population -- 1.13 billion in 2007 but it also has one of the lowest penetration rates for prope rty and casualty insurance in Asia in terms of premium as a percentage of GDP. Indias general insurance market witnessed a variety of changes as deregulation continue d at a hectic pace.
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The total number of general insurers registered with IRDA are increasing day by day, with the registration of SBI General Insurance Company Li mited, a joint venture general insurance company promoted by State Bank of India and Insurance Australia Group, Australia, as a general insurer in December 2009. Moreove r, L&T Gene ral Insurance is readying to launch its operations in the next three to five months. The Gross Premium unde rwritte n by public sector non-life insure rs for the April-December 2009 period posted year-on-year growth of 11.37 per cent as compare d to the year- on-yea r 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 pre mium unde rwritte n by the industry during the April December 2009 period, US$ 3.24 billion came from the four public sector companies as compare d to US$ 2.91 billion during the same period in 2008. Moreove r, in the 2010-11 budget, Finance Mi nister, Mr Pranab Mukherjee, has decided to roll back the gove rnme nts decision to tax the unrealised gains of non-life insurance companies. The appreciation in the value of investme nts, being in the nature of unrealized gain is not taken into account for de termining profit or loss of non-life insurance business as per the IRDA regulations. It is, theref ore, proposed that the unrealized gains due to a ppreciation in the value of investme nts will not be include d in the total income, according to the budget documents. According to data from the IRDA ( Summary Re ports 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 proble m faced by all the insurance company is lack of awareness about Risk exposures and about insurance products available to the custome rs. 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 insura nce products available in the marke t.
Affordability::
In India majority of the population standard of living is low and majority
of the m 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.
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Access ibility::
The policies are complex to understand by a layman the procedures are
difficult to obtain policies if done individual .the re are a lot of activities and formalities involved in orde r to get the insurance policy.
In appropriate
/ inadequate
dis tribution
strategies::
Majority of the population is not awa re of the be nefits that the insurance company provides. And they are also not aware of the various schemes which these companies introduce.
FUTURE PROSPECTS::
Huge market largely untappe d especi ally in Rural & Urban regions can be targeted to increase the numbe r of insurer in the marke t. 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 awa reness throws open huge opportunities on insurance. High growth in Automobile sector. Huge strides in Health Care opening up huge Health Insurance pote ntial. In Rural sector large numbe r of Micro finance institutions, Self Help Groups are setup who can be the major clients of this industry. The Governme nt initiatives on Mass insurance. General Insurance would grow at CAGR 17% next 5years.
Pros of D isaster Insurance::

It coul d 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 l onger term planning in development. By reducing the need for inte rnati onal involve ment in eme rgencies, it can diminish the negative effect external relief and reconstruction interventi ons often have in erodi ng local marke ts 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-determinati on.
It can guarantee greater dignity f or the beneficiaries than aid appeals (Syroka and Wilcox, 2006). If weather data collected are ope nly shared, they can be valuable for any Disaster Risk Reduction progra mme. Current expe rience is, according to the expe rts involved in its implementation, transferable to other countries with available historical and update weathe r data. The World Bank and WFP are also exploring the opportunity f or Satellite Data to be c onsidered acceptable by the reinsurance market as this would allow virtually insuring any country in the worl d against bad weather, eve n if weather stations are not available.
Challenges & Limitations of Disaster Insuran ce ::

There is the risk of conflict with exi sting response capacities, where existing systems can overlap with ne w progra mmes complementing the Insurance (see possible conflict between DPPC and Contingency Plan in Ethiopia3) It seems quite clear f rom actual experience that Disaster Insurance can no t be a stand alone tool and it needs to be part of a broade r conti ngency plan, since it can not cover the risk of mild droughts or othe r chronic risks (as otherwise the pre mium 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 the refore, 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 importa nt to recognize that insuranc e can at the most replace losses but it is not oriente d to create improve ments in quality of life (Pelling, 2007).
List of GENERAL INSURERS:: Public S ector::

National Insurance Company Limite d 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
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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 Sundara m 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.c holainsurance.com www.ecgcindia.com
REINSURER::
General Insurance Corporation of India www.gicindia.com
Market
s hare
of
d ifferent
companies
ingeneral
insurance industry::
Table-2
Page 37
Methodology::
Literature Survey::
The analysis has started with the literature survey of va rious news papers, magazine which hel ped the various aspects of the insurance industry in India. According to Parasuraman et al (1985) custome rs perceptions of the service received equate with customers prior expectations, and then a quality service has been delivered.
Des ign 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 da mages caused by disaster. A sample questionnaire is given into Annexure-I.
Des ign 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 N agar area. They were from different age group and income level.
Data Tabulation::
Sche matics showing Methodological Steps
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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 ex perience of natural disaster natural disaster 68% responde nt has experience of natural disaster. From this we can say that Uttaranc hal state is a disaster prone state. Those have the experience of natural disaster among of the m 64% of the pe ople 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
Source: Q uestionnaire
Page 39
FIG:: 3
From this figure we can inte rpret that the pe ople of De hradun gene rally 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.
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FIG:: 5 S ource: Questionnaire From the previous figure it is clear that 64% of the people are a ware about disaster insurance , but the most important thing is that do they have insurance coverage?
FIG:: 6 S ource: Questionnaire From this figure we get to know that those who aware about disaster insurance among of them only 42% pe ople has insurance coverage. The pene tration of insura nce should increase to reduce the financial damages caused by disaster. Govt. should take some initiative to promote insura nce. 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 cove rage, 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% marke t share; new i ndia assurance has 35% market share; united india insurance has 20% market share and oriented insurance has 5% marke t share.
Page 42
FIG:: 9 S ource: Questionnaire I also try to find out the pe rcepti on of the people of Dehradun about disaster insurance. What they think about disaster insurance. Is disaster insurance effective to recove r the damages caused by natural disaster. 61.2% of the respondent those who aware about disaster insurance , think that disaster insurance is effective to recove r the damages caused by natural disaster. And anothe r amazing thing is that 91.2% of the respondent think that Govt. of Uttaranchal should take some initiative to improve the aware ness of disaster insurance.
CONCLUSION::
Uttaranc hal, 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 f requency and the unpre dictability of the occurre nce of these disasters, an attempt to de velop capacity to undertake disaster mitigation strategies is very important. The ulti mate 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 re duce vulne rability. In short the emphasis of the approach to disasters should shift from reaction to anticipation. In othe r 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 Dehra dun not so much aware about disaster insurance. In this situation Govt. of Uttaranc hal should take some initiative to improve the aware ness of disaster insurance. 91.2% of the respondent think that Govt. of Uttara nchal 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 Utta ranchal. 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 compre hensive disaster prepa redness prog ramme becomes relevant. Some of the initiatives have been taken i n the right direc tion but st ill 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 doesnt 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 Manageme nt 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 Governme nt 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 Manageme nt NDMA National Disaster Management Authority NDMF National Disaster Mitigation Fund
References::
http://ndmindia.nic.in/EQProjects/Disaster%20Management%20in%20I ndia%20 %20A%20Status%20Report%20-%20August%202004.pdf http://www.azadindia.org/social-issues/poverty-in-india.html http://ncw.nic.in/pdfre ports/Gende r%20Profile-Uttaranchal.pdf http://www.afminetwork. org/fichiers/ressources/18.pdf
Page 46
http://www.prove ntionc onsortium.org/the mes/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.dury ognivaran.org/doc ume nts/country%20 pape rs/India%20Country%20 Paper. p df http://planningcommission.nic.in/aboutus/committee /wrkgrp11/wg1 1_disastermg.pdf http://e n.wikipedia.org/wiki/Avalanche http://e n.wikipedia.org/wiki/Cyclone http://e n.wikipedia.org/wiki/Flash_flood http://e n.wikipedia.org/wiki/Drought http://e n.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://e n.wikipedia.org/wiki/Category:Ea rthquakes_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%20Ve rsionweb. 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]

Compan y guide Mr. ab hishek mishra [area head- ksbl]

faculty guide prof. vines h jain [faculty member-ibs dehradun]

KARVY STOCK BROKING LTD.

Mr. Abhishek Mishra [Area headKa rvy stock broking ltd.]

Prof. Vinesh Jain [Faculty membe rIBS-Dehradun]

KARVY STOCK BROKING LTD.

Certificate by the organization::

KARVY STOCK BROKING LTD.

KARVY STOCK BROKING LTD.

KARVY STOCK BROKING LTD.

KARVY STOCK BROKING LTD.

KARVY STOCK BROKING LTD.

Reason behind the success of karvy::

KARVY STOCK BROKING LTD.

VARIOUS TYPES OF NATURAL DISASTER::

MAN MADE D ISASTER::

VARIOUS MAN MADE D ISASTER::

Hazard vulnerability in india::

KARVY STOCK BROKING LTD.

WIND AND CYCLONES::

In creasin g visibility and impacts of disaster::

KARVY STOCK BROKING LTD.

KARVY STOCK BROKING LTD.

Administrative Structure for Disaster Management in Uttaranchal::

Ins titutional Arran gements at Dis trict Level::

District Control Room Desk Offices And Officers in Charge

Site Operation centre Site Manager

KARVY STOCK BROKING LTD.

Ins titutional arran gements at state level::

Pr. Secre tary of Disaster Management

Commissioner Disaster Management

Disaster Management and Mitigation Center

Pr. Secre tary of Disaster Management

Disas ter Mitigation and Management Centre::

KARVY STOCK BROKING LTD.

Dis trict Project Officer::

In itiatives for Earthquake Resis tant Houses::

KARVY STOCK BROKING LTD.

Repair and Retrof itting of Ex isting Houses::

In tegration with Other Schemes::

Rina Sahay Yojana::

NATIONAL DISASTER MANAGEMENT FRAMEWORK::

Agencies/sectors to be involved and resource linkages

KARVY STOCK BROKING LTD.

KARVY STOCK BROKING LTD.

State Gove rnments

KARVY STOCK BROKING LTD.

iii.EARLY WARNING SYS TEMS::

KARVY STOCK BROKING LTD.

Doordarshan/ All India Radio.

Disas ter Managemen t Act, 2005::

National Executive Committee (NEC)::

State D isaster Management Authority (SDMA)::

KARVY STOCK BROKING LTD.

Dis trict Disas ter Management Authority (DDMA)::

National Institute of D isaster Managemen t (NIDM)::

National D isaster Response Force (ND RF)::

KARVY STOCK BROKING LTD.

BASIC INSURANCE TERMINOLOGIES::