The Kerala Cabinet meeting held in Thiruvananthapuram on Tuesday gave in-principal approval to implement a comprehensive group insurance scheme in the State to ensure financial security against damage to dwellings (or human habitations) due to natural calamities. The scheme will be implemented through the State Insurance department.
The insurance scheme was devised against the backdrop of the recurring calamities that cause a big strain on the financial security of the State in terms of emergency response, relief, rehabilitation, and reconstruction. The scheme would be implemented as per the recommendations of a committee headed by K. Ravi Raman, member of the State Planning Board, which conducted a study to formulate a risk transfer mechanism suitable for the State.
The committee recommended implementing an innovative ‘Risk Transfer Mechanism’ on the ‘Climate Risk Insurance’ model to shoulder the liabilities arising out of disasters. Along with this, the committee also recommended developing a ‘Parametric Insurance’ system on the Nagaland model. The Rebuild Kerala Initiative (RKI) has also conducted a study on this. The State government has now given in-principle approval to the proposals that emerged from these studies.
The in-principle approval has been given to implement the comprehensive insurance scheme, including complementary insurance models of parametric insurance and indemnity insurance (only for BPL families). The amount required for the scheme has been approved to be met from the State Consolidated Fund and the Chief Minister’s Distress Relief Fund in the ratio of 1:1. A detailed plan will be prepared in consultation with the departments/agencies concerned, such as the Finance department, Disaster Management department, Kerala Disaster Management Authority, Revenue department, RKI and so on.
Published – February 24, 2026 08:23 pm IST
