Funds managed by insurance companies to touch Rs 30 tn: IRDA's J Hari Narayan
Authority (IRDA) chief said.
He said the regulator has submitted an approach paper on
insurance cover for natural disasters to National Disaster Management Authority.
"There are several things which could be addressed adequately. One is to give a proper insurance cover for natural disasters and catastrophes. It is recently that I could finish an approach paper which has been shared with the National Disaster Management Authority.
"So that has to be taken forward. That's an important area. Secondly, a deeper strengthening of reinsurance products should take place. That's another one which needs to be done," Hari Narayan said.
Quoting United Nations Environment Programme, 'The India Risk Survey 2012', by Pinkerton C&I India(P) Ltd and Federation of Indian Chambers of Commerce and Industry (FICCI), he said China, India and Bangladesh are ranked first, second and third respectively, in terms of the number of deaths caused due to natural disasters.
In 2011, while China witnessed as many as 22 natural disasters, India witnessed 16, the report said.
According to him, both insurance for natural disaster and reinsurance are interlinked. "Particularly, for natural disaster insurance, there has to be a good reinsurance system] in place," he said.
"Suppose we have situation of a flood, like we had in Mumbai or some other place. Unless we have good reinsurance and systems in place it might be problematic for the Indian] industry. You can't address catastrophe unless you have strong reinsurance. Both go together," he said.
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