GR to NOK of Covid casualties

The news report

Most news items are intended to inform, and update the masses on various issues relevant to them so that they initiate action, and get benefitted. This article is therefore not to question either judiciousness, or intention of the news report that is presently viral on the social media, and pertains to Covid. Published in a vernacular newspaper this report conveys that the next of kin (NOK) of the persons who have died due to Covid are entitled to gratuitous relief (GR) out of state disaster response fund (SDRF). It highlights two reasons for non-payment of the admissible GR so far; (i) lacking knowledge of the concerned officials on procedures, and admissibility, and (ii) NOK of the Corona fatalities not coming forward with their claim. Not resting the case here, the report goes on to provide details of the various documents that have to accompany the application for speedy settlement of the claim.  As is the case with such news items this one has also gone viral on social media, and almost everyone is busy benevolently forwarding the clipping to their acquaintances, of course without caring to cross check its authenticity, who have lost their near, and dear ones due to Covid so that they could avail benefit from this provision, and are not left out.

The bereaved NOK of the Covid victims are thus busy gathering, and putting together documents mentioned in the news report. They are  at the same time contacting their influential acquaintances for assistance in getting their claim processed, and settled promptly, and conveniently.

If not anything else, this convinces me that all these people still have faith in the media, and this is sure to bring forth responsible, and authentic reporting, particularly of issues that concern the masses.

But then, many amongst us might not be aware as to who, and under which circumstances is illegible for relief? For that matter what is SDRF? How is it managed? Who decides if one is to be extended relief? What about relief amount?

Do you have answers to all these?

If not, I would help you explore and find out the reality.

So, stay along if you are really interested in knowing if the NOK of Covid fatalities are entitled to GR out of SDRF.

Financing of disaster relief

Be it relief or scholarship, if it involves money it has to come from public exchequer that is always governed by certain rules, and regulations. One needs to understand that money gets collected into the public exchequer from various sources, mainly in the form of taxes, revenues, and the like. In accordance with the provisions laid down by our Constitution (Art. 280) this money then gets redistributed in accordance with ground rules laid down from time to time by the Finance Commission (FC).

It was agreed from the very beginning that states cannot be left on their own to manage the calamities, and have to be provided dedicated resources for the same.

For this the II FC recommended Margin Money Scheme while the IX FC recommended setting up of Calamity Relief Fund (CRF) – its size for the states being decided on the basis of the money spent by them on disaster relief.

While deciding to continue with CRF, the X FC recommended setting up of National Fund for Calamity Relief (NFCR) for calamities of rare severity.

It was the XI FC that specifically provided that the victims of (i) cyclone, (ii) drought, (iii) earthquake, (iv) fire, (v) flood, and (vi) hailstorm be provided relief out of CRF in accordance with norms decided by the Ministry of Home Affairs (MHA), and provided that CRF resources be shared in 75:25 ratio between centre and states. It discontinued NFCR, and constituted National Calamity Contingency Fund (NCCF) for calamities of rare severity with provision of its replenishment through special cess on central taxes.

The XII FC added (i) landslide, (ii) avalanche, (iii) cloudburst, and (iv) pest attack to the list of notified calamities for which relief out of CRF is admissible.

The XIII FC in accordance with the provisions of the Disaster Management Act, 2005 (S. 46, 48) reconstituted NCCF as National Disaster Response Fund (NDRF), and CRF as State Disaster Response Fund (SDRF). It provided for 90:10 share to SDRF for special category states, and added tsunami to the list of notified calamities. MHA notified cold wave/frost as  a natural calamity during the award period of XIII FC.

XIV FC provided for 90:10 share to SDRF for all the states, and allowed states to notify natural calamities with a rider that spending on these be limited to 10% of SDRF.

XV FC brought SDRF/NDRF under the larger umbrella of State/National Disaster Risk Management Fund (SDRMF/NDRMF), and constituted both National and State Disaster Mitigation Fund (NDMF/SDMF) as provided by Disaster Management Act, 2005 (S. 47, 48).

Notified calamities

So at present relief out of SDRF is admissible to the victims of (i) cyclone, (ii) drought, (iii) earthquake, (iv) fire, (v) flood, (vi) hailstorm, (vii) landslide, (viii) avalanche, (ix) cloudburst (x) pest attack, (xi) tsunami, and (xii) cold wave/frost.

The state government can at the same time notify local calamities with a restriction that expenditure on it is limited to the limit of 10% of the SDRF allocation.

Covid not  a notified calamity

It is worth noting out here that on the aftermath of Covid MHA has allowed spending up to 50% of SDRF allocation on (i) Covid related quarantine, sample collection, and screening, and (ii) procurement of essential equipment/laboratories for response to Covid as a special one time dispensation (33-4/2020-NDM-I dated March 14, March 28, July 14 and September 23, 2020).

The above makes it clear that Covid has not been included in the list of notified natural disasters. The MHA has just allowed spending of SDRF on certain Covid related items.

The victims of Covid are therefore not entitled to any relief out of SDRF, and this includes GR admissible to the NOK of the persons who die in notified natural calamities.

So the NOK of Covid casualties should not unnecessarily bother authorities and desist wasting their time in the hope of getting the relief out of SDRF.

Clarification by the newspaper

The concerned newspaper should at the same time publish a fresh report clarifying this issue, accepting its mistake. The readers are sure to take it positively and this honest confession is sure to add to the credibility of the newspaper. This would at the same time reduce the burden of both health and disaster management authorities that would not be unnecessarily bothered by people.

Norms of relief

Having come this far, it would be worth mentioning that one ought to have clear distinction between relief, and compensation. The former is the assistance provided to help overcome difficult situation, and has no relation to the magnitude of the loss. Relief out of SDRF in case of loss of house due to notified calamity is one, and the same for all irrespective of size or cost of the damaged house. The latter is however in keeping with the loss as is provided for in case the lost assets are insured. It is worth adding that the state or government provides relief, and does not compensate losses suffered by the victims of notified calamities.

It is worth keeping in mind that not all losses, even in case of notified natural calamities, qualify for relief out of SDRF, and the relief is paid only against the specific losses, and that too at standardised rates as laid down by MHA.

State government options

In case the state government decides to extend GR benefit to the NOK of Covid fatalities it can notify Covid as a local calamity, but with rapidly growing death toll it would not be possible to limit the spending to 10% of the SDRF allocation as is mandated by XIV FC. Alternatively, the state government can decide to provide assistance of a certain agreed upon amount to the NOK of Covid fatalities out of Chief Minister Relief Fund or its own resources. But then, not many state governments would be in a position to do so comfortably.

In case you find this useful, you are requested to share it with your acquaintances, and near and dear ones who might be wasting their time unnecessarily running from pillar to post for getting the relief that really does not exist.