Introductions
The National Insurance Commission is
a statutory authority of the government of Pakistan, which provides financial
support to individuals and businesses by providing protection against risk and
helping them cope with the impacts of disasters and other natural calamities.
In addition to its role as an
advisor and facilitator, the NIC has also played an active part in the
establishment of policies for disaster management. It is also a partner in
designing plans, policy proposals, and implementing programs that are aimed at
improving safety. The commission also manages the State’s finances and funds
projects like flood control.
Insurance
in Pakistan
National Insurance Commission helps
organizations and individuals who suffer from financial difficulties as they
face hazards such as fire, flood, or natural disaster. The protection against
risks and disaster assistance given to people facing these challenges is given
by National Insurance Commission through its program called “Emergency
Assistance” which includes help on emergency and disaster preparedness,
rehabilitation and recovery, loss of property, medical care, temporary shelter,
food distribution, etc. The money offered for emergency programs helps them
deal with their disaster-related expenses.
Insurance
in Islam
I believe this is the most
contentious article to have appeared on IFG to date. Why? Well, many of my
opinions on Islamic financial matters are mainstream, but as I've studied the
topic of insurance more, I've found myself shifting position. Below are my
preliminary thoughts on why most types of insurance should be considered
permissible (halal).
Insurance
for Disaster Management
The organization can offer many
services depending on the nature of the disaster. For instance, it can provide
counseling to survivors and help them deal with any future problems or make
future plans if required. This is especially helpful to those who have lost
someone or suffered from a tragic event. Also, it would be easy for families to
get back anything that was taken away, such as photos or videos of their loved
ones during the disaster. It can even offer relief, if need be, to ensure that
no family goes through this trauma again. It offers help with money in case of
emergencies, including donations and cash transfers. Another advantage is that
it can take steps to stop or prevent further occurrences of hazards and prevent
costly clean-up costs too.
NIC also provides information and
advice on how to plan, prepare and manage your business in the wake of the
disaster. They have been doing so for years now which is why they know what
business strategies you should adopt under conditions of disaster. It has all
kinds of tools to use to do so which includes a checklist, disaster recovery
strategy, and much more.
According to data provided by the
Pakistani Disaster Management & Reconstruction Authority (PDMRA), there
were 1,634 natural and man-made disasters between 2009 and 2014. More than half
the incidences happened because of hazardous elements and/or natural hazards.
Some natural factors that lead to human-made events include floods, typhoons,
and landslides.
National Insurance Commission has
helped many disaster victims financially. According to them, the financial aid
given to some victims and their immediate relatives and victims of losses due
to natural disasters is not enough, therefore, additional funding can be needed
to cover financial needs and facilitate access to housing, sanitation
facilities, and medical care. This is where NIC comes into play. Through its
Emergency Assistance and other initiatives, NIC and several nongovernmental
organizations receive financial assistance to build houses for survivors of
disasters, provide education on disaster management, and distribute food to
survivors and others affected by the tragedy.
These funds will also go towards
establishing and running schools in areas affected by the disaster. Those who
have fled their homes to seek refuge are often forced to leave everything
behind and go into exile during the whole process. As a result, most people
experience displacement as well as homelessness. Therefore, they are usually
unable to find ways to maintain their income or to stay in the same location to
live their lives.
Insurance
for construction
Due to migration, many young people
start working in construction jobs which may require very little compensation.
If one gets married after migration, he or she cannot continue living with his
or her parents after getting divorced. This makes them jobless and unable to
get any employment. And as a consequence, many migrate abroad either
temporarily or permanently during disasters like flooding, landslide,
earthquake, and severe weather. So, it is crucial to give such people economic
security to survive the aftermath of the disaster.
According to the official records,
as many as 2,728 million people have been affected in 2015 alone. With our
resources being drained or destroyed by the storms and floods of recent times,
we are left with only 9% of those people to take care of themselves and their
dependents. These numbers show how serious the issue is. Since the NIRF
(National Insurance Fund) runs out of financial reserves and is dependent on
revenues generated by government companies, it cannot meet the social demands
it did in the past. We have nothing to rely on except in this segment as the
funds allocated for the provision of emergency assistance are provided by the
federal government. After every catastrophe, some of us still have to wait until
the next crisis comes to take a decision on whether to save or not.
So it is really important to get
people in life back on track as soon as possible but we have to be realistic
about what else the world currently requires. Thus, the way to do this would be
to pay attention to the details and focus on issues that matter more and more.
Because we live in an age where everything can change and, therefore, we need
to adapt to the changing circumstances.
In the meantime, it is important to
keep going with what matters the most to make sure that the situation doesn’t
become an unmanageable burden on the person who is most vulnerable to these
hazards.
There are many more things that
National Insurance Commission does that might affect the lives of people. One
of them is the implementation and execution of programs like Education,
Employment, and Social Protection. There is also a program known as Women
Empowerment Program. It helps women economically, economically wise, and
socially wise. It gives educational assistance in order to empower women and
girls, both boys and girls. Moreover, it gives them an opportunity to earn
livelihoods which would enable them to take care of their families.
Another thing that the National
Insurance Commission does for the benefit of society is its various community
development activities, which are conducted by different institutions and
organizations around Pakistan. They include education, health education,
agriculture, trade, and tourism, among others. All of these are supported by
funds from the national government, while some state governments also put-up
funds for such activities.
For example, in 2003, the then
chairman of the National Insurance Commission Dr. Syed Haider Ali led an
initiative called the Youth Development Program, which focused on promoting
youth participation in politics. As a result, over a hundred thousand youths
got elected to parliament in 2010.
We need to work together. Together,
we can take the country forward. We can create peace, harmony, and progress.