The government can create a guarantee fund for insurers incurring catastrophic losses on account of natural disasters. Elaborate (200 Words)
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 2 years
KEY POINTS
· One of the major findings of the recently released All-India Debt and Investment Survey (NSS 77th Round) by the National Statistical Office is the pronounced inequality in the distribution of assets, both in rural and urban areas.
· In urban areas, the inequality was more visible than that in rural areas with the top 10 per cent owning 56 per cent of assets and bottom 50 per cent owning merely 6 per cent.
· Frequent natural catastrophes constitute one of the main reasons for exacerbation of inequality in asset distribution in India.
· India is vulnerable to almost all types of natural catastrophes: floods, tropical cyclones, earthquakes, tsunamis, droughts, landslides and hail.
· The government, private agencies (including NGOs) and global agencies help mitigate the after-effects of natural calamities.
· However, during such crises, no resource can be said as adequate. Therefore, households also have to do their bit, and one of the productive means is to protect their lives and assets from damages via insurance cover.
· Low insurance penetration in India must be addressed primarily by motivating people not to become fatalistic and increasing their insurance awareness and literacy.
· IRDAI and insurers should formulate a framework with weather module-based and parametric insurance solutions to bring adequate financial relief to end-users.
K. V. A 2 years
Pls review
IAS Parliament 2 years
Try to provide a comprehensive conclusion. Keep Writing.
Nivetha 2 years
Please review
IAS Parliament 2 years
Try to cutshort the way forward part and include more relevant points in the answer. Keep Writing.
Sriram 2 years
Kindly review
IAS Parliament 2 years
Good attempt. Keep Writing.
