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Financing and insurance related policies for disaster reduction in India are designed to ensure timely availability of funds for prevention, mitigation, preparedness, response, relief and recovery. The Disaster Management Act, 2005 provides the legal framework for financial arrangements at national, state and district levels. It emphasizes a shift from a relief-centric approach to a proactive strategy focusing on risk reduction and resilience building. At the national and state levels, dedicated disaster response and mitigation funds have been institutionalized. The National Disaster Response Fund (NDRF) and State Disaster Response Fund (SDRF) are the primary financial mechanisms for meeting immediate relief expenditure during notified disasters. The SDRF is the first line of funding and is financed by the central and state governments in a prescribed ratio. In case of severe calamities where SDRF resources are insufficient, additional assistance is provided from the NDRF. These funds cover relief measures such as temporary shelter, food, drinking water, medical care, debris clearance and assistance for damaged houses and livelihoods. To promote long-term disaster risk reduction, the National Disaster Mitigation Fund (NDMF) and _____ __________ _______ _______ ______ ___ _________ __________ _________ _____ ________ ____.
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