Agricultural insurance supports farmers in distress
The Ministry of Agriculture and Rural Development (MARD) reviewed the outcomes of a public-private project on agriculture risk management through insurance on October 8.
The Ministry of Agriculture and Rural Development (MARD) reviewed the outcomes of a public-private project on agriculture risk management through insurance on October 8.
Vietnam and Spain engaged in the project from 2013 to October 2015 with a focus on building their own agricultural insurance systems.
In Vietnam, the initiative has been piloted across 20 provinces with insurance available for rice, domestic animals and aquacultural species as compensation in case of natural disasters and disease outbreaks, among others.
As a result, over 304,000 households and organisations bought agricultural insurance with a combined value of 7.7 trillion VND (342 million USD) with total compensations exceeding 712 billion VND (31.6 million USD).
Taking into account further foreseen positive impacts, the MARD proposed continuing and expanding the pilot project.
However, according to Deputy Head of the Cooperatives and Rural Development Department Le Duc Thinh, Vietnam has yet to devise a legal framework for the insurance system or establish independent supervision and management agencies.
Maria Jose Pro from Spain’s agricultural insurance agency recommended relevant laws and regulations ought to specify the responsibilities of sides involved while long-term budget allocation and capacity-building programmes are needed.-VNA
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(Illustration Photo: VNA)
