Covid-19 Compensation

• 30 Sep 2021

Why in News

Recently, the Ministry of Home Affairs has issued orders for an ex gratia of Rs. 50,000 to the next of kin of those who died of Covid-19. The amount has been recommended by the National Disaster Management Authority (NDMA).

• The amount will be disbursed from the State Disaster Response Fund (SDRF).
• Last year, Covid-19 was notified as a disaster by the Ministry.

Key Points

• About:
  
  • The ex gratia is applicable to the deceased, including those involved in relief operations or associated in preparedness activities “subject to the cause of death being certified as Covid-19’’.
  • The assistance would be applicable from the date of the first case in the country and continue till the de-notification of Covid-19 as a disaster or till further orders, whichever is earlier.
• State Disaster Response Fund (SDRF):
  
  • About:
    
    • SDRF has been constituted under Section 48 (1) (a) of the Disaster Management Act, 2005.
      
      • It was constituted based on the recommendations of the 13^th Finance Commission.
    • It is the primary fund available with the State governments for responses to notified disasters to meet expenditure for providing immediate relief.
    • It is audited by the Comptroller and Auditor General of India (CAG) every year.
  • Contribution:
    
    • The Centre contributes 75% of the SDRF allocation for general category States and Union Territories and 90% for special category States and Union Territories (northeastern States, Sikkim, Uttarakhand, Himachal Pradesh, Jammu and Kashmir).
    • The annual Central contribution is released in two equal installments as per the recommendation of the Finance Commission.
  • Disaster (s) Covered under SDRF:
    
    • Cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloudburst, pest attack, frost and cold waves.
  • Local Disasters:
    
    • A State Government may use up to 10% of the funds available under the SDRF for providing immediate relief to the victims of natural disasters that they consider to be ‘disasters’ within the local context in the State and which are not included in the notified list of disasters of the Ministry of Home Affairs.

Source: TH