A pilot agricultural insurance programme from 2011 to 2013 has been carried out for more than one year according to the Prime Minister’s Decision 315/QD-TTg. This government-backed policy aims to stabilise production and livelihoods of the people and support good implementation of social welfare policies. Chosen localities for the pilot programme base on local characteristics and conditions like farming practices, population distribution and economic development requirements to grow paddy rice, livestock and poultry, and aquaculture- most important agriculture products.
More insured
The first positive result of the pilot agricultural insurance is to expand the scope of the insured and clarify processes of damage disclosure and verification for quick compensation. According to the Decision No. 3035/QD-BTC, the Ministry of Finance added ducks to the objects insured and removed basa catfish from the insured group of fisheries; expanded the insured coverage of disaster risks (thunderstorm and cyclone); supplemented disease risks to the insured scope of cattle (pasteurellosis and anthrax), pigs (erysipelas suum, salmonellosis, pasteurellosis, cholera), poultry (Newcastle, gumboro and fowl cholera).
As regards paddy rice output insurance, the Ministry of Finance has uplifted the coverage from 80 per cent to 90 per cent of average productivity at the commune or unit insured and apply to all pilot localities. This decision increases benefits for the insured when rice is damaged by natural disasters and epidemics.
In addition, coverage of the insured are also increased. For example, policyholders will receive compensations for cultivation costs for a rice field covering more than 5 ha damaged during the time of transplanting/sowing by covered risks. Premiums are reduced for rice farming by 4.97 per cent - 20 per cent, depending on locality. Premiums for animals are slashed by 10 per cent - 50 per cent, depending on the type of the insured. The insurance coverage for dairy cows is VND60 million instead of VND35 million.
Continued policy improvement
To date, the pilot agricultural insurance programme was applied in all chosen provinces and cities with 160,787 households holding policies, of which 85 per cent are poor households. The value of insurance of crops, livestock and aquaculture is VND1,845 billion and premiums are valued VND130.518 billion.
Accordingly, paddy rice insurance is carried out in Binh Thuan, Dong Thap, Nghe An, Thai Binh and Ha Tinh, Nam Dinh and An Giang provinces with 36,997 ha insured, 149,502 households insured. Total insurance value is more than VND823.255 billion and premiums total VND35.97 million. Compensations for Nghe An and Ha Tinh provinces are VND6 billion.
Livestock and poultry insurance is applied in Bac Ninh, Dong Nai, Nghe An, Vinh Phuc Thanh Hoa, Binh Dinh and Hanoi, with 7,362 households covered. Insurance value VND186.378 billion and premiums are VND12.259 billion. Compensations paid are VND23 million.
Meanwhile, insurance for aquaculture is applied in Bac Lieu, Soc Trang, Tra Vinh, Ben Tre and Ca Mau, with 1,032 ha of land insured and 3,923 households covered. Total premiums are VND82,288 million. Compensations are VND35,854 million.
The Ministry of Finance in collaboration with the Ministry of Agriculture and Rural Development, and Provincial/Municipal People's Committees asked the Prime Minister for amendments and supplements to the Decision 315/QD-TTg in accordance with the directive contents stated in the Deputy Prime Minister Vu Van Ninh’s Document No. 7369/VPCP-KTTH. Accordingly, proposals include higher levels of supports for near-poor households but lower than levels for poor households stipulated in the Decision 315/QD-TTg. The pilot time may be last through June 30, 2014.
Trinh Hai
Vietnamese
