The Times Of India September 10, 2019 12:49:08The latest flood insurance figures are in, and the number of insured in flood zones has more than doubled in the last five years to 7.8 lakh from 1.9 lakh.
In the last 10 years, the number covered by flood insurance has more or less stabilized, at around 3 lakh, according to a report by the Insurance Research and Analysis Centre (IRAC) of the Institute of National Defence (IND).
It has seen a spike in cases since the flood hit in October 2019, when the average death toll from the flood was around 1,000.
As of September 2020, there were nearly 2.6 lakh flood-related deaths in India.
The government has invested more than Rs 3.8 trillion in flood defences and the cost has gone up from around Rs 3,200 crore in 2014 to over Rs 4,000 crore in 2020, the IRAC said.
While the government has said it will spend about Rs 3 lakh crore on flood defences, the amount has not been formally disclosed.
A spokesperson for the National Disaster Management Authority of India (NDMAI) told The Times that the total amount spent on flood defence is Rs 4.9 trillion.
This year’s floods have claimed about 15,000 lives, with many more affected.
The government is trying to reduce the number to 12,000 by the end of the year.
The total number of people living in flood-affected areas has risen from 12.2 lakh in 2016 to 15.9 crore last year.
Some 1.6 crore people are eligible for flood insurance under the National Flood Insurance Scheme (NFIS) and over 70,000 people have been given flood insurance through the National Urban Flood Insurance Program (NNIFP).
According to the NDMAI, around 75,000 households are entitled to flood insurance.
Most of the insured are renters, while the remainder are in commercial and small-scale businesses.
To get the insurance, the average cost of the flood damage is around Rs 1,500.
Insurance is paid for for a period of two years.
There are various types of flood insurance available to renters and small businesses.
They include flood insurance for up to 10 people, flood insurance to five people and flood insurance with a maximum of 50 people.
“Flood insurance is available in all flood zones except floodplains and floodplaces where there are multiple flood zones, and there is no flood insurance at all,” the NDMASI said.
It added that, in the case of private property, the policyholder is entitled to insurance for their property for one year.
However, if the property is located in floodplants, the property must be protected for five years.
For the uninitiated, the terms of insurance vary from city to city.
The maximum amount for flood damage for a property in flood zone is Rs 10 lakh and the average for residential property is Rs 1.5 lakh.