07 types of agricultural insurance in Vietnam

07 types of agricultural insurance in Vietnam (Internet image) 

1. What is agricultural insurance?

According to Clause 3, Article 3 of Decree 58/2018/ND-CP, agricultural insurance means a type of insurance which insures agricultural producers, whereby the policyholder pays premiums and insurer indemnifies the insured in the case of an insured event.

2. 07 types of agricultural insurance in Vietnam

Agricultural insurance has the following types of insurance:

(1) Insurance against identified risks, whereby, upon occurrence of an insured event, the insurer indemnifies for the actual loss caused by the risks specified in the agricultural insurance policy.

(2) All-risk insurance, whereby, upon occurrence of an insured event, the insurer indemnifies for the actual loss caused by all risks, except for the insurance exclusions specified in the agricultural insurance policy.

(3) Business income insurance, whereby, upon occurrence of an insured event, the insurer indemnifies for agricultural production costs to compensate the loss caused by the insured risks specified in the agricultural insurance policy.

(4) Productivity index-based insurance, whereby, upon occurrence of an insured event, the insurer provides indemnity according to the actual increase and decrease in productivity of a geographical area (district, commune, etc.) under the agricultural insurance policy without regard to the actual loss of the subject matter insured.

(5) Weather index-based insurance, whereby, upon occurrence of an insured event, the insurer provides indemnity according to changes in weather index (rain, wind, droughts, floods, cold, hail, frost, earthquake, tsunami, etc.) under the agricultural insurance policy without regard to the actual loss of the subject matter insured.

(6) Remote sensing index -based insurance, whereby, upon occurrence of an insured event, the insurer provides indemnity according to changes in remote sensing index under the agricultural insurance policy without regard to the actual loss of the subject matter insured.

(7) Other types of agricultural insurance under the agricultural insurance policy.

(Article 4 of Decree 58/2018/ND-CP)

3. Contents of agricultural insurance policy in Vietnam

In addition to the contents specified in the Law on Insurance Business (amended in 2010, 2019), the policyholder and the insurer in Vietnam shall agree upon and specify the following contents in the agricultural insurance policy according to Clause 1, Article 6 of Decree 58/2018/ND-CP:

- Name and address of the individual and affiliated entity of the insurer that is responsible for addressing the issues concerning execution of the agricultural insurance policy.

- Methods for determining the sum insured.

- Cases in which deductible and deduction of the indemnity (if any) are applied.

- Loss survey; loss surveyor; loss survey costs.

- Determination of insured event, grounds for providing indemnity; cases in which indemnity is provided according to the notice or confirmation of disasters or diseases given by a competent authority; cases in which index-based insurance is provided/purchased, specific agreement on the indexes directly related to loss of the subject matter insured; the authority that determines the difference between the actual index and the index insured; methods for determining the indemnity.

- Methods for providing indemnity; indemnity claim (specifying agreement on responsibility of the policyholder or the insured documents for providing necessary documents for the insurer); time limit for providing indemnity.

- Responsibilities of parties for risk management and loss prevention and minimization, and prevention and fight against insurance fraud in accordance with regulations of Decree 58/2018/ND-CP.

- Responsibilities of the insurer and the insured for complying with all technical procedures and standards in agricultural production (if any).

The insurance policy signed between the entity eligible for assistance in the agricultural insurance premium and the insurer shall be executed as prescribed in Decree 58/2018/ND-CP.

Thanh Rin

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE