Continue to implement the Agricultural Insurance Pilot Program

Deputy Prime Minister Vu Van Ninh has just given instructions on the pilot agricultural insurance according to Decision No. 315/QD-TTg dated March 1, 2011 of the Prime Minister.

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Through the report on the results of the agricultural insurance pilot, localities and farmers have expressed their desire to continue implementing or expanding the agricultural insurance pilot program. Therefore, the Deputy Prime Minister believes that the agricultural insurance pilot program should not be ended immediately when the Ministry of Finance has not proposed a future direction.

The Deputy Prime Minister assigned the Ministry of Finance to preside over and coordinate with the Ministry of Agriculture and Rural Development to study and propose future directions. While proposing new policies, the Ministry of Finance, the Ministry of Agriculture and Rural Development and relevant agencies and units should propose measures to continue implementing agricultural insurance, meeting the needs, aspirations and in accordance with the actual situation of businesses and localities.

After 3 years since the issuance of Decision 315/QD-TTg, the pilot implementation of agricultural insurance has achieved practical results and received enthusiastic response from people because of the great benefits it brings.

According to the report of the Ministry of Finance, after 3 years of implementation, up to now, 20 provinces and cities have participated in the pilot implementation of agricultural insurance. Accordingly, 304,017 farming households/agricultural production organizations have participated in agricultural insurance, including 233,361 poor households (accounting for 76.8% of the total number of households participating in insurance), 45,944 near-poor households (accounting for 15.1%), 24,711 ordinary households (accounting for 8.1%), and 1 agricultural production organization.

The total insured value of the entire pilot program reached 7,747.9 billion VND, of which the total insured value of rice crops was 2,151 billion VND, the total insured value of livestock was 2,713.2 billion VND, and the total insured value of aquatic products was 2,883.7 billion VND.

Total revenue from agricultural insurance premiums after 3 years of piloting agricultural insurance is 394,000 million VND, of which, revenue from aquatic insurance premiums is 218,175 million VND (accounting for 55.4% of total revenue); revenue from rice insurance premiums is 91,919 million VND (accounting for 23.3% of total revenue); revenue from livestock insurance premiums is 83,906 million VND (accounting for 21.3% of total revenue).

In addition, the total amount of insurance compensation settled up to June 20, 2014 was 701.8 billion VND, the insurance compensation rate was 178.1%; in which, mainly compensation for aquatic insurance with the total insurance compensation amount being 669.5 billion VND (compensation rate was 306%); followed by rice insurance compensation with the total actual compensation amount being 19 billion VND (compensation rate was 20.6%); livestock insurance compensation was 13.3 billion VND (compensation rate was 15.9%).

Through the above figures, it can be seen that the policy of the Party and State in implementing agricultural insurance is very correct, this is a policy to stabilize production and people's lives, contributing to the good implementation of social security policies. The localities selected for piloting, the districts and communes for piloting with rice, livestock and aquatic products are important agricultural products of the locality, suitable to the conditions, characteristics of agricultural production, population distribution and economic development requirements of the locality.

In addition, through the pilot program on agricultural insurance, agricultural producers have been made aware of and accustomed to complying with production, cultivation, and aquaculture processes. This is the basic goal that the agricultural sector wishes to achieve in order to move towards comprehensive commodity production.

According to Chinhphu.vn