Prime Minister Dr. Manmohan Singh has asked for setting up of a mechanism to provide risk insurance and contingent credit facilities to people affected by disasters.

Dr. Singh said, the current systems, particularly at the national level lack institutional incentives and do not promote risk insurance and contingent credit facilities.

The development of such arrangements, the Prime Minister said, is particularly important to facilitate immediate funding to reduce human suffering and economic losses in the aftermath of disasters.

Dr. Singh said this while addressing the first session of the National Platform for Disaster Risk Reduction that began in New Delhi this morning. The Prime minister said making risk reduction an intrinsic part of development process would help to avoid devastating losses that cause significant set backs.

Emphasizing on involving local communities in Disaster Risk Reduction activitites, the prime minister also asked authorities to pay special attention in making full use of Panchayati Raj institutions in Disaster mitigation and risk reduction efforts.