Below is the notable content in the Draft Decree on Agricultural Insurance. From the beginning of 2018, poor households may receive up to 90% support when participating in agricultural insurance.
Article table of contents
According to the draft, the subjects of agricultural insurance contracts are all types of crops, livestock, and aquaculture determined based on agreements between the insurer and agricultural production organizations or individuals. The insurable risks include:
- Natural disasters: storms, tropical depressions, tornadoes, lightning, heavy rain, floods, flash floods, landslides due to rainstorms or runoff, subsidence due to rainstorms or runoff, and other types of natural disaster risks.- Epidemics:- Animal diseases: infectious diseases in terrestrial animals and aquatic animals such as avian influenza, blue-ear disease, foot-and-mouth disease, anthrax, spirochetosis, aquatic animal diseases, and other diseases as listed by the competent authority under the veterinary law.- Plant pests: pests that cause widespread damage to plants, such as brown planthoppers, leaf curl, blast disease, and other pests according to plant protection and quarantine laws.- Other animal diseases and plant pests as agreed between the insurer and agricultural insurance participants.- Other risks beyond natural disasters and epidemics as agreed between the insurer and agricultural insurance participants.
Losses Excluded from Insurance Liability
The insurer is not liable for the following losses:
- Losses arising from intentional actions by the policyholder or the insured to cause damage.- Losses arising from wars, terrorism, nuclear reactions, nuclear radiation, or radioactive contamination.- Losses arising when the policyholder does not have an insurable interest as specified in Clause 9, Article 3 of the Insurance Business Law.- Other losses as agreed in the insurance contract.
Based on the market value of the insured assets at the time and place of loss occurrence and the actual degree of damage, the insurer determines the amount of insurance to be paid to the insured; the costs for determining the market value and the degree of damage are borne by the insurer. In the case of index insurance, the insurer indemnifies based on relevant weather indices, disease, production parameters, etc. Besides compensation, the insurer must also pay the insured necessary and reasonable costs to prevent and mitigate losses and expenses incurred by the insured to comply with the insurer's instructions.
90% Agricultural Insurance Premium Support for Poor Farming Households
From January 1, 2018, entities meeting all the following conditions will receive state support for agricultural insurance premiums:
- Poor and near-poor farming households engaged in agricultural production recognized by the valid decision of the competent local authority at the time of participating in insurance.- Have entered into an agricultural insurance contract with the insurer to insure against natural disaster risks as announced by the competent state authority, and the insurance contract has taken on insurance liability.
Support levels:
- For near-poor farming households: The state budget supports 75% of agricultural insurance premiums.- For poor farming households: The state budget supports 90% of agricultural insurance premiums.
