The Finance Ministry has recommended raising the agricultural insurance premium subsidy level significantly.
This is because the actual implementation of such insurance coverage shows that participants are mainly poor and near-poor households, according to a report on the news platform, vneconomy.vn.
According to the Ministry’s draft decree amending agricultural insurance regulations, individuals classified as poor households may receive a subsidy of up to 95% of their insurance premiums (an increase from the current 90%).
Individuals not classified as poor or near-poor households will receive a 50% subsidy (currently 20%); and agricultural production organisations will receive a 30% subsidy.
In addition, the Ministry proposes that it be allowed to add key crops, livestock, and aquaculture products of the locality to the insurance scheme. The existing scheme covers crops (rice, rubber, pepper, cashew, coffee, fruit trees, vegetables); livestock (buffaloes, cows, pigs, poultry); and aquaculture (tiger shrimp, whiteleg shrimp, catfish).
Furthermore, under the proposed new regulations, the Ministry will allow credit institutions to provide loans to agricultural production organisations and individuals to pay insurance premiums in addition to the portion of insurance premiums subsidised by the state budget. In particular, insurance contracts can be considered as collateral for loans if the parties agree, the Ministry added.
These changes aim to expand coverage and enhance the attractiveness of agricultural insurance, thereby increasing the resilience of agricultural production to risks and meeting social welfare objectives.
The Ministry said that currently, only three out of 31 insurance companies and branches of foreign non-life insurers participate in the government’s agricultural insurance support scheme. It said, “Even these units are doing so cautiously, prioritising efficiency and risk control."