An individual who works in agriculture and is from a poor or near poor household will receive support of up to 90 per cent for agricultural insurance fees from the Government.

New resolution No.58, which will be valid from June 5, 2018, moreover, says that an individual who works in agriculture and does not belong to a poor or near poor household will be covered for up to 20 per cent of agricultural insurance fees.

Agricultural insurance aims to protect farmers against any loss of crops and livestock. It is expected to provide value to low-income households in rural areas by increasing farmers’ resilience against incidents as well as promoting investment in planting and breeding activities.

According to the new policy, an agricultural organisation may also be supported up to 20 per cent of agricultural insurance if it operates in the model of cooperative, cooperates with others and applies innovations in planting and manufacturing towards a clean, high-tech and eco-friendly agriculture.

The subjects covered by the resolution are divided into three categories, listed below:

Plants: rice, rubber tree, pepper, cashew, coffee, fruit trees and vegetables.

Livestock: buffalo, cow and poultry

Aquaculture: black tiger prawn, whiteleg shrimp and tra fish.

Risks against which farmers are protected by the insurance including natural risks and animal disease risks which have to be publicly announced or officially confirmed by responsible State agencies.

Provinces and cities which enjoy the assistance policy are the country’s main agricultural production areas. Moreover, the list of areas receiving the assistance policy in these provinces and cities will be decided by the Prime Minister. Therefore, local authorities can choose to implement the support on all chosen areas or on piloting communes and districts. The list of these localities has to be announced on mass media and reported to ministries of finance, agriculture and rural development.

The process of granting insurance fees will be conducted by insurance agencies, following the procedure regulated by the Government.

Insurance agents providing agricultural insurance have to meet the Government’s requirement of capital, solvency, internal audit and management. They also have to have headquarters or branches at provinces or cities where the policy of agricultural insurance assistance is conducted. – VNS