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EPOK, W. JAVA: An insurance expert has called on the government and financial institutions to devise a natural disaster insurance scheme to protect victims in times of need.

Establishing a fund in which the government regularly pays for the premium and works with insurance companies to manage and grow it, is one way to facilitate natural disaster relief in the archipelagic country, said Kornelius Simanjuntak, an academic at the University of Indonesia’s Faculty of Law.

It would take a hefty amount of money to rebuild the victims’ homes, while they would be facing financial difficulties following the disaster, with banks also reluctant to lend because of their financial instability, he added, arguing that government support and international aid alone would not be able to fully provide for them.

“Natural disasters destroy the victims’ dwelling and cause the victims to experience physiological suffering, because they have to live in refugee camps,” he said on Saturday.

The Financial Services Authority (OJK) appreciated the idea but considers it far-fetched.

“Maybe it is possible one day. Our [level of] prosperity does not support the plan [right now], and we have too many citizens here,” said Firdaus Djaelani, the OJK commissioner overseeing the non-banking financial industry. — JP