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Official Gazette

Thursday, July 2, 2020

Poor farmers to get financial support when joining agriculture insurance

Updated: 17:16’ - 05/04/2017
Agricultural households would receive a financial support to participate in agriculture insurance, according to a draft decree recently revealed by the Ministry of Finance.

Eligible for this support are poor and near-poor households with the support level equal to 90 percent and 75 percent, respectively, of payable insurance premiums, the draft says.

Agricultural households would receive a financial support to participate in agriculture insurance__Photo: Internet

However, the draft requires such households to be recognized as poor and near-poor ones by local competent agencies at the time they wish to join the insurance and sign agriculture insurance contracts to insure for risks incurred to them as announced by the competent state agencies.

Under the draft decree, agriculture insurance would be voluntary insurance based on agreement between insurers and agricultural households in accordance with the Law on Insurance Business and relevant regulations.

To make it easier for farmers, the draft decree requires insurers to carry out the procedures for provision of financial support to poor and near-poor ones after signing agriculture insurance contracts with them.

According to the drafters, agriculture insurance, which covers damage caused by natural disasters and animal and plant epidemics, would provide more financial solutions to farmers to reduce their risks in agricultural production, and lessen the burden for the state budget.

It would also create opportunities for insurers to reach new and potential customers, and to launch diversified insurance products suitable to the demands and financial capabilities of these customers, the drafter said.- (VLLF)

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