Kathmandu. Thailand has launched a new initiative to ensure the financial security of the people affected by natural disasters. The government has approved the launch of a national disaster insurance program for about 30 million families. <\/p>\n
The Thai cabinet approved the program on September 1. The primary objective of this initiative is to provide immediate financial assistance to affected families after disasters such as floods, storms, and earthquakes and to reduce further financial pressure on the government. <\/p>\n
Every year, natural disasters cause significant damage to homes, agriculture and businesses in Thailand. The country’s flood-prone central region, low-lying areas around the capital Bangkok, the southern coastal region and some earthquake-prone areas are most at risk. <\/p>\n
Thailand has suffered significant loss of life and property from several disasters over the past two decades. This includes the devastating floods of 2011. The government spends up to 30 billion baht (about $910 million) each year to provide compensation and support after these disasters. <\/p>\n
The new program aims to help Thailand prepare economically for disasters rather than relying solely on government support. <\/p>\n
Prime Minister Anutin Charnvirakul has said that the government will spend about 15.5 billion baht ($467 million) annually on the insurance program. This will help the public buy disaster insurance coverage. <\/p>\n
The programme aims to cover around 3 crore families. The benefits for each family will be determined on the basis of disaster risk profile, past damage data and geographical location of the region. Special emphasis will be given to flood-prone areas, coastal areas and earthquake-prone areas. <\/p>\n
Under this program, the families affected by the disaster will get immediate financial assistance. According to the plan, the families affected by the floods will get 10,000 bhattas initially and the families affected by storms or earthquakes will get 5,000 bhattas. The target is to distribute this amount within 15 days of the disaster. <\/p>\n
Apart from this, compensation up to Rs 1 lakh will be provided for the damage to the house and life insurance benefit up to Rs 20 lakh will be provided for the death of a family member in the event of a disaster. <\/p>\n
Government and private insurance companies will work together in this program. The government will provide insurance coverage to the public and the insurance companies will be responsible for verifying the damage information, accepting the claim, and distributing the compensation. <\/p>\n
In the case of a major disaster, the amount of damage can be very large. In such a situation, insurance companies can transfer a part of their risk to another insurance company. This is called reinsurance. <\/p>\n
The Thai government has not yet finalized which insurance companies will participate in the program. However, the country’s major general insurance companies are likely to participate. Their job will be to assess disaster risks, calculate losses, and quickly resolve claims for affected people. <\/p>\n
According to experts, implementing national disaster insurance can reduce the pressure on the government to spend large sums of money at once after a major disaster. This means that the insurance already in place will ensure faster relief for the affected people and simplify the government’s financial planning. However, insurance is not a substitute for government support, but rather an additional financial security measure to fight the disaster. <\/p>\n
Many countries around the world have already implemented effective disaster insurance systems. In Japan, government and private insurance companies work together to address earthquake damage. In the United States, there is a national flood insurance program for flood-affected people. The experience of these countries has shown that when the government and the insurance sector work together, it is easier to manage disaster damage. <\/p>\n
This initiative by Thailand can help disaster-prone countries like Nepal rethink the implementation of disaster insurance. Floods, landslides, and earthquakes affect many households in Nepal every year. <\/p>\n
The government, in collaboration with insurance companies, can implement disaster insurance for people living in riverine areas, flood-prone areas, and low-income communities on easier terms and at a lower cost. <\/p>\n
At present, the devastating floods in the Bhotekoshi and Trishuli rivers have claimed hundreds of lives and thousands are missing. With this, thousands of families have been displaced. Rescue and relief distribution work is going on. <\/p>\n
Although the devastating floods have caused huge economic losses, the insured losses are low. People and businesses in areas where there is still a risk of flooding are less insured. Small shops and businesses that are insured for large projects but do not have insurance are suffering huge financial losses from such flood-related disasters every year. <\/p>\n
Therefore, the National Disaster Insurance Program launched by the Thai government can be a lesson for Nepal. – With the help of the agency.<\/p>\n","protected":false},"excerpt":{"rendered":"
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