More incentives for farmers with agricultural insurance
A series of changes in compensation conditions, risk forms, etc. will be adjusted in a more beneficial direction for farmers participating in agricultural insurance.
These are the contents just announced by the Ministry of Finance in Decision No. 2114 to remove difficulties in mechanisms and policies in the process of piloting agricultural insurance.
Specifically, the new decision has raised the insured yield for rice to 90% of the average yield of the commune or insured unit instead of the current 80%. This regulation is applied to all localities piloting agricultural insurance for rice.
Photo for illustration purposes only (Source: VNA)
According to the Ministry of Finance, this new regulation will increase benefits for insured people when rice crop damage occurs due to natural disasters or epidemics and is within the scope of insurance.
In addition, regarding the conditions for compensation for replanting costs, according to the old regulations, insurance companies only compensate for this cost in cases where more than 20% of the actual rice area in the commune is damaged. However, the reality of piloting agricultural insurance shows that, for some localities with large rice areas, 20% of the damaged rice area in the commune during the transplanting/sowing period is also a very large number.
Therefore, to be consistent with reality, the Ministry of Finance decided to calculate the cost of replanting in cases where more than 5 hectares of rice in the commune are actually damaged.
Also in the new decision of the Ministry of Finance, some insured risks for rice plants and livestock have been added such as: natural disasters (storms, tornadoes); diseases for buffaloes and cows (septicemia, anthrax), pigs (stamps, paratyphoid, septicemia, cholera), chickens and ducks (Newcastle disease, gumboro and duck cholera).
In addition, some regulations considered to be inappropriate to reality have also been removed in the new regulations of the Ministry of Finance.
In particular, the regulation on the number of livestock participating in insurance has been newly decided to be abolished to create conditions for all farming households to participate in agricultural insurance when needed.
Previously (according to Decision 3035/QD-BTC), livestock damage caused by epidemics had to be over 10% of the total herd on a commune scale (in the case of individual fish farming) and over 10% of the number of livestock (in the case of farm farming) to be considered and settled for insurance compensation.
However, these regulations have also been removed in the latest announcement of the Ministry of Finance to help farmers resolve compensation issues./.
Up to now, after more than 1 year of piloting agricultural insurance, there have been 20 provinces and cities with more than 100,000 households participating in signing insurance contracts (of which 88% are poor households). With this number of households, the total value of crop and livestock insurance is 1,027 billion VND, of which the insurance premium is 53.9 billion VND. During the pilot period from 2011 to 2013, the State supported 100% of the insurance premium for poor farming households and individuals, 80% for farming households and near-poor individuals and 20% for agricultural production organizations. |
According to (Vietnam+) - MD
