Sri Vijaya Puram, October 22: Residents and businesses in the Andaman and Nicobar Islands have been urged to consider insurance coverage against earthquakes, tsunamis, cyclones and other natural disasters as the National Disaster Management Authority (NDMA) pushes for wider financial protection against disaster-related losses across India.
The advisory follows directions issued by the NDMA, New Delhi, in line with recommendations of the 16th Finance Commission, which has emphasised expanding insurance coverage as part of disaster risk management.
The Commission has recommended greater adoption of insurance products in accordance with international best practices and encouraged States and Union Territories to strengthen financial protection against natural hazards.
Acting on these recommendations, the NDMA, in consultation with the Department of Financial Services under the Government of India, has compiled a list of existing insurance products designed to cover different categories of disaster-related risks.
The exercise involved coordination with the Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited.
The initiative holds particular relevance for the Andaman and Nicobar Islands, where exposure to earthquakes, tsunamis, cyclones, heavy rainfall and other natural hazards makes disaster preparedness an important concern for households, commercial establishments and industries.
The Directorate of Disaster Management, Andaman and Nicobar Administration, has called on individuals, families, shopkeepers, small and medium enterprises, large industries and other vulnerable groups to examine the available insurance options.
It has advised prospective policyholders to select coverage according to their exposure to risks, financial circumstances and specific protection requirements rather than adopting a uniform approach.
According to the Directorate, suitable insurance coverage can help reduce the financial burden arising from disaster-related damage and support the restoration of property, livelihoods and commercial operations.
The advisory places financial preparedness alongside existing disaster management measures, including public awareness, risk mitigation, emergency preparedness and response.
For businesses, insurance can provide a financial mechanism to address losses and facilitate the resumption of operations following a disaster. For households, appropriate coverage can help manage expenses associated with damage to property and disruption of livelihoods.
The NDMA’s initiative focuses on encouraging wider use of insurance products already available in the market, rather than announcing a new insurance scheme.
The Administration has urged residents and businesses to assess their individual vulnerabilities and consider available financial protection measures as part of their broader disaster preparedness planning.
