National Disaster insurance framework to protect vulnerable on cards


ISLAMABAD, Feb 20 (APP): National Disaster Management Authority (NDMA) is preparing a National Disaster Insurance Network to protect vulnerable, low income coummunities from risk of natural disasters.
The framework would address the acute and often invisible challenges of rehabilitating affected communities in the aftermath of an extreme weather event.
“The Government is committed to develop a more proactive
approach to cope with these climate challenges, by putting effective
ex-ante and ex-post disaster risk management measures in place”, an
official of NDMA told APP.
Low income communities are more vulnerable to climate change
because the severity of the impacts they face, is greater than their
ability to respond and recover from these impacts.
Therefore, the Government is endeavoring to set up a national
fund that has adequate resources locked in place before disaster
strikes, whicy has the ability to disburse these resources quickly
communities in need.
He informed that the project is being executed by NDMA in
collaboration with Climate and Development Knowledge Network (CDKN)
and the Munich Climate Insurance Initiative (MCII).
In the first phase of the “Developing a Disaster Insurance
Framework for Pakistan” project, MCII undertook a comprehensive
review of existing hazard data, knowledge, and approaches in
Pakistan on the management of natural hazard risks, he stated.
It reviewed existing national insurance funds worldwide and
conducted an extensive stakeholder dialogue in the country that
culminated in five possible Fund design options.
The focus of the first phase of project activity was on
understanding, and assessing the risk profiles of the study areas,
he further stated.
This focus implied gathering, compiling, processing, and
analyzing exposure data of affected communities, and examining
hazard patterns and their interrelationships, the official added.
As climate change continues to have a drastic and significant
impact, expenses associated with large-scale disasters are likely to
increase, hindering the achievement of national development goals.
He shared that affected communities often face potential
losses of great magnitude which exacerbate the already fragile
condition of these communities. Loss of productive assets, lost
economic opportunity, deceased food, water and human security, are
all pathways into deeper poverty.
To become more resilient, he informed, countries need to
implement practical measures that will enhance their ability to
recover from present ad future climate risks.
Governments play a leading role in developing risk management
strategies designed specifically to protect vulnerable, low-income
So, a robust disaster risk management strategy needed to have
at its core a strong social protection and financial inclusion
component to protect vulnerable communities.
For the purpose, a total of 1410 households in Rawalpindi,
Charsadda, Poonch, Ziarat and Tharparkar were surveyed to understand
what the awareness level of the target communities was climate
change and how they cope with the consequences of recurring floods
and droughts on their lives and livelihoods.