Page 48 - Shelter-October-2022
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POLICY REVIEW
level rise on properties along by those who had insurance India has established a total
the coast is not available, in Chennai was close to 1 corpus of Rs. 1601 billion
disparate information billion USD (https://www. (USD 20 billion) for States for
suggest that the rise in sea business-standard.com/ disaster management for the
level along Indian coast will article/current-affairs/ duration of 2021-26, of which
pose significant risk of flash chennai-floods-insurance- the Union share is Rs. 1226
flooding and submergence cl ai ms- to uch -r s-4 -80 0- billion (USD 15 billion) and
of many of the significant crore-116012201026_1.html). States share is Rs. 375 billion
coastal properties and road This is huge considering that (USD 5 billion). This is as per
th
networks. For example, 998 the penetration rate of non-life the recommendations of 15
buildings and 24 km of road insurance in India is merely Finance Commission (XV-FC).
network in Mumbai will be 1% (https://www.statista. In addition, the Commission
impacted by future rise in com/statistics/655395/ has recommended that for
sea levels by 2050 (Deccan life-and-non-life-insurance- cities with million plus
Herald, 2022). During high penetration-india/). Mumbai population, a separate fund
tide, the number of buildings had suffered economic losses should be established. So far
and road-length in Mumbai worth USD 1.75 billion as the allocation of funds is
that would face the threat of between 2005 to 2015 due concerned, the XV-FC has
submergence in the future to floods (Pandey, 2019). recommended allocation
SLR scenario rises to 2490 and The coastal megacities of Rs. 15 billion (USD 0.19
126 km respectively (RMSI, (having more than 10 million billion) to mitigate the risk of
2022). Key coastal properties population) are losing at least erosion across Indian states
under threat due to the SLR USD 6 billion every year due and Rs. 10 billion (USD 130
include Haji Ali Dargah, to extreme flooding events million) for re-settlement of
Jawaharlal Nehru Port Trust, and these losses will increase people affected by erosion.
Bandra-Worli Sea Link and to USD 1 trillion annually by In addition, the Commission
the Western Express Highway. 2050 if no coping/adaptation has recommended allocation
Similarly, 55 buildings in strategies are developed and of Rs. 5 billion (USD 63
Chennai; 464 buildings implemented in time (Pandey, million) each to three most
in Kochi; 349 buildings in 2019). populous Indian coastal cities
Trivandrum and 206 buildings viz. Mumbai, Kolkata and
in Visakhapatnam will be THE FUNDING GAP Chennai for reducing the risk
under risk of submergence The risk that the sea level rise of flooding.When seen relative
due to SLR by 2050 (RMSI, poses will require disaster to the value of economic
2022). Majority of these management efforts at the losses faced in Chennai and
buildings will be residential societal and individual Mumbai, these funds are
complexes thereby impacting property owner’s level. insufficient. The Commission
lives and livelihoods of many Considering the scale of the also recommended
people. The flash floods funds required for disaster employing market-based risk
which submerged Chennai management (flooding is just management instruments
in November 2015 caused one component of disasters such as insurance schemes
economic losses to the extent that requires management for providing financial
of USD 2.2 billion (Business besides drought, groundwater assistance and relief against
Line, 2018), making these salinity, loss of land/revenue, the disasters. XV-FC had
floods most expensive ones damage to the infrastructure proposed four insurance
in 2015. The insurance claims etc.), the Government of interventions, viz. National
46 HUDCO-HSMI Publication
