IRDAI to launch catastrophe insurance schemes as pilot project in some states

Keeping the rapid growth of natural disasters in the country, the IRDAI is working on launching the government-funded catastrophe (cat) cover for the poor sections of the society. After receiving the government approval, the IRDAI will launch the cat cover in select states as a pilot project, he said. Though the severe flash floods in Chennai in 2015 were the largest disaster, causing estimated economic losses of $2.2 billion, insured losses were estimated at around $755 million, which makes up these floods the second costliest insurance event in India. Due to these events, the vulnerability of rapidly growing urban areas to flash floods caused by heavy rain came in the light. The government has launched the crop insurance scheme that has aided the farmers to a great extent in the past two years.