Page 5 - Risk Management Bulletin April -June 2021
P. 5

RMAI BULLETIN APRIL TO JUNE 2021





             TROPICAL




             CYCLONES - A



             CHALLENGE TO



             INDIAN GENERAL



             INSURANCE




             INDUSTRY








             T         ropical Cyclone is a hazard experienced on  Paradeep, Haldia while Gujarat has well developed


                                                              ports growing very rapidly.  Refineries and downstream
                       sea coasts in the tropical regions of the
                       earth and is known to man for many
                                                              plant complexes are generally located in & around the
                       centuries. They have caused catastrophic
             havocs in terms of loss of human lives and damage to  port cities. The population of the port cities is ever
                                                              increasing and so there are consumer industries to
             the assets on the coasts.                        meet the growing needs of ever increasing population.
                                                              About 80 cyclones hit coasts ion the tropical regions
             India is blessed with a long coast of 7516.5 kilometers  of the earth every year and about 6% hit Indian coast.
             covering both the east & west coast. The sea ports are  The vulnerability of the port cities therefore is
             gateways to international trade resulting in port cities  increasing with no tools available to assess & quantify
             with large population and creation of huge capital  the risk of Tropical Cyclone and to control it to
             assets. Mumbai developed into commercial capital of  acceptable/insurable level.
             India since it was a port city. Similarly port cities on
             the east coast such a Chennai, Vishakhapatnam,   A lot of data is available in terms of regions prone to
                                                              Tropical Cyclones, their intensities & frequencies. The
                                About the author              effort however is directed towards predicting the
                                                              Tropical Cyclone track and giving early warnings and
                            Shreenivas Vasudeo Kulkarni       to save lives. The human losses are  reduced
                            Panel Expert / Consultant - Unity  substantially in the 21st century. Thanks  to the
                            Geospatial LLP                    satellites and the early warning systems developed by
                            Retired Risk and Insurance Management
                            Consultant                        meteorological offices world over and the disciplined
              B. E. (Electrical), AIII (Indian Insurance Institute, Mumbai),  evacuations carried out by the local governments. But
              ACII (The Chartered Insurance Institute, London), DIPSM  the Tropical Cyclones continue to cause enormous
              (British Safety Council, London)                economic damages/losses.


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