ABSTRACT
This paper is a relook at the way the disaster management institutional set up has grown in India and looks at the efficacy of compensation mode of receipt either through a government declaration of relief or receipts from insurance sector. The findings are that due to poor record of citizen services rendered by existing insurance firms, the infusion of liquid capital in the insurance sector will remain circumspect. Now that the economic revival after Lockdown 4.0 has become imminent there is a requirement to reduce dependency on foreign products and services and the call of Atmanirbhar’ or self-sufficiency can only be achieved if the insurance giants at multinational level are forced to cough out their share of humongous profits. The existing government treasury is stretched and may not be in a position to fulfil declared political obligation. The article also marks a number of legislations which become limitations in accumulating large Disaster Relief corpus at national and state level. It concludes that group insurance is a innovative concept to meet all ends as it is a promise to share the load of Government announced relief as it empowers the people and shifts the liability on insurance funds. The gain on vote banks could also be the reason as to why the government of the day may just adopt it.
