Vietnam’s agricultural insurance assistance policy

Decree No. 58/2018/NĐ-CP of Vietnam’s Government details a number of key issues of agricultural insurance support policy as follows:

Insured subject matters eligible for assistance

Insured subject matters eligible for assistance include:

- Plants: Rice, rubber trees, peppers, cashew trees, coffee trees, fruit trees, vegetables.

- Domesticated animals: Buffaloes, cows, pigs, poultry.

- Aquaculture: Giant tiger shrimps, whiteleg shrimps, tra fish.

Assistance

- An individual that produces agricultural products and is a member of a poor household or near poverty household is eligible for an assistance of not greater than 90% of agricultural insurance premiums.

- An individual that produces agricultural products and is not a member of a poor household or near poverty household is eligible for an assistance of not greater than 20% of agricultural insurance premiums.

- An organization that produces agricultural products by using a large-scale and concentrated cooperation model that applies advanced technologies and production processes towards green, hi-tech and environmentally friendly agriculture is eligible for an assistance of not greater than 20% of agricultural insurance premiums.

Insured risks eligible for assistance

According to Decree No. 58/2018/NĐ-CP, insured risks eligible for assistance include:

- Disaster risks, including: Storm, tropical depressions, lightning, cyclones, heavy rain, floods, flash floods, inundations, landslides and land subsidence due to floods or water currents, water level rise, seawater intrusion, extremely hot weather, droughts, damaging cold, hail, hoarfrost, earthquakes, tsunamis. 

Disasters shall be announced or confirmed by a competent authority.

- Disease risks, including:

+ Animal diseases:

• Terrestrial animal diseases: terrestrial animal diseases’ infectious diseases included in the List of animal diseases subject to outbreak declaration of Vietnam (including dangerous infectious diseases causing severe socio-economic damage and dangerous infectious diseases transferred between people and animals) promulgated by a competent authority in accordance with regulations of the law on veterinary medicine.

• Aquatic animal diseases: Aquatic animal diseases included in the List of animal diseases subject to outbreak declaration of Vietnam promulgated by a competent authority in accordance with regulations of the law on veterinary medicine.

+ Plant pests: Harmful organisms that may potentially spread on a large scale and cause severe damage to plants in accordance with regulations of the law on plant protection and quarantine.

Diseases and pests shall be announced or confirmed by a competent authority.

Areas eligible for assistance

- A province or central-affiliated city that is within the major area where agricultural products are produced according to agriculture restructuring orientations and agriculture development plan shall be provided with assistance in agricultural insurance premiums. The Prime Minister shall decide on the list of provinces and central-affiliated cities provided with assistance in agricultural insurance premiums.

- Each province or central-affiliated city may implement the agricultural insurance assistance policy within its total area or some district and commune. According to the Prime Minister’s decision on eligible entities, types of plants and domesticated animals, aquaculture, types of insured risks eligible for assistance, the People's Committee of the province or central-affiliated city within the area eligible for assistance shall select and announce the areas eligible for assistance in agricultural insurance premiums through the local mass media and notify them in writing to the Ministry of Finance and the Ministry of Agriculture and Rural Development.

Implementation of agricultural insurance assistance policy in each period

According to Articles 18, 19 and 20 and Clause 1 Article 21 of this Decree and capacity of budget in each period, the Prime Minister shall issue a decision on agricultural producers, types of plants and domesticated animals, aquaculture and types of insured risks eligible for assistance, assistance, time for providing assistance, areas eligible for assistance, funding allocated by the central government budget to the local government budget for provision of assistance in agricultural insurance premiums.

Agricultural producers will receive assistance in agricultural insurance premiums if they are the ones eligible for assistance in agricultural insurance premiums who have subject matters insured and provide insurance for the insured risks according to the Prime Minister’s decision and who are within the areas eligible for assistance included in announcement by People's Committees of provinces and central-affiliated cities.

Funding for providing assistance

- Funding for providing assistance is covered by the central and local government budget and included in the annual state budget estimate.

- The funding allocated by the central government budget to the local government budget to provide assistance in agricultural insurance premiums shall adhere to the rules for provision of dedicated funding allocated from the central government budget to the local government budget to implement social security policies.

Decree No. 58/2018/NĐ-CP of Vietnam’s Government takes effect from June 05, 2018.

-Thao Uyen-

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