Positive signs from fishing vessel insurance.

(Baonghean) - Every year, our province experiences quite a number of fishing boat accidents, causing significant economic losses for fishermen. Decree No. 67/CP, with its special preferential policies, promptly supports fishermen, allowing them to confidently stay at sea and reduce risks when participating in fisheries; currently, fishermen in Quynh Luu district and Hoang Mai town have actively participated in purchasing crew insurance and fishing boat insurance...

Mr. Ho Van Thanh, owner of a boat with a capacity of over 300 horsepower in Son Hai commune (Quynh Luu district), said: “Immediately after PJICO Nghe An Insurance Company implemented Decree 67/CP, seeing the practical benefits, we participated in insurance to mitigate risks. Specifically, we purchased hull insurance with 70% government support, and crew insurance for 8 members on board (1 chief engineer, 1 captain, and 6 crew members) with 100% government support. On May 1, 2014, while at sea, the boat hit a reef and the propeller broke. We reported it to the representative of PJICO Nghe An Insurance Company. The insurance officer quickly came down to verify the damage and completed the procedures, compensating us with 8.5 million VND, which promptly helped us repair the propeller so we could continue fishing at sea.”

In Quynh Luu, all fishing boats with a capacity of 90-400 horsepower are insured by local fishermen.

Mr. Nguyen Van Muoi from Quynh Lap ward (Hoang Mai town) said: “My family's boat has a capacity of over 500 horsepower. According to Decree 67, the State supports 90% of the cost, so we only had to pay nearly 3 million VND for hull insurance. Recently, the boat lost its anchor. After verification, PJICO quickly processed the compensation, and we have now received 9 million VND in compensation.” The Thuy Dai household in Quynh Lap ward, whose 165 horsepower boat was insured for hull and fishing gear, received 70% support worth 5 million VND. Their boat's propeller broke, and they received 8 million VND in compensation from PJICO Nghe An.

Mr. Nguyen Van Nho, Chairman of the Farmers' Association and Vice Chairman of the Fisheries Association of Quynh Lap ward (Hoang Mai town), further shared: "The timely and efficient settlement of insurance benefits has encouraged fishermen to venture out to sea, maintain national sovereignty over the sea and islands, and increase customer confidence. Therefore, the number of insured vessels is high. Quynh Lap currently has 150 out of 170 vessels insured, and most fishermen also have crew insurance. Currently, Quynh Di has 44 out of 44 vessels insured, and Quynh Phuong has 184 out of 200 vessels insured..."

However, not all boat owners are aware of the importance of insurance. After more than a year since his fishing boat ran aground at the Lach Van estuary and was completely damaged, Mr. Tran Van Tam from Quyet Thang hamlet, Dien Bich commune (Dien Chau district) said: "My family's 200 HP boat, used for offshore fishing for only two years, ran aground on October 24, 2014, while passing through the Lach Van estuary. The waves damaged the hull, and the boat sank. All equipment, machinery, and fishing gear were lost, with total losses of nearly 600 million VND. After the sinking, my family fell into debt and poverty. Only then did I think about buying insurance for the fishing boat, but it was too late… If I have the means to build a new boat in the future, I will definitely purchase insurance for the crew and the boat." In Dien Ngoc commune, there are over 400 boats and ships, including 67 offshore fishing vessels with engines ranging from 90 to 400 horsepower or more. However, only 10 of them have crew and vessel insurance. Since 2013, Dien Ngoc has experienced 8 boat accidents resulting in losses exceeding 4 billion VND, with the lack of insurance causing significant financial losses for the local people.

The Director of PJICO Nghe An Company stated: Immediately after receiving approval from the Ministry of Finance to be the leading unit in organizing and implementing fisheries insurance support for fishermen in Nghe An and some other provinces, PJICO Nghe An Company coordinated with relevant departments and agencies of the province to prepare in many aspects for the implementation of fisheries insurance according to Decree 67/CP. Simultaneously, it organized professional training courses for its staff and agency network in the province. In coordination with the Fisheries Exploitation and Protection Sub-Department, it visited localities with fishing vessels eligible for insurance under Decree 67 to promote and encourage fishermen to participate in the insurance program.

Training sessions on fishing vessel insurance were organized to guide fishermen on the content, rules, conditions, terms, and benefits of participating in insurance; and to quickly answer questions about policies supporting fishermen. The implementation of Decree 67 on encouraging fishermen to purchase crew and vessel insurance has been quite smooth. Firstly, local authorities at the commune, district, and town levels have shown great interest and coordinated efforts, thereby raising awareness among fishermen about participating in insurance to protect their assets and feel secure in their profession.

To date, the entire province has achieved 700 out of 1,271 vessels insured for hulls and 8,000 out of 14,000 for crew members. In particular, the districts of Hoang Mai and Quynh Luu have seen over 90% of their vessels insured. PJICO Nghe An aims to encourage fishermen to insure the remaining crew members and vessels by the end of September 2015. Mr. Nguyen Van Le further explained: To facilitate fishermen's participation in vessel insurance, the team of consultants and insurance agents regularly visit the area to clearly explain insurance rules, coverage levels, and conditions for claims settlement, especially regarding difficult-to-understand technical terms, and to minimize cumbersome procedures.

The company also has a 24/7 hotline to receive information about fishermen's complaints for timely handling. From the beginning of 2015 to the present, the company has settled compensation for nearly 10 cases of boat accidents worth over 3 billion VND. However, the company faces many difficulties, as the accidents occur offshore. Besides the low awareness of insurance among fishermen, the cost of investing in equipment and the expenses of surviving in the fishing industry are very high. Therefore, many fishermen have cut back on expenses, including not buying insurance.

Van Truong