Vietnam: Types of agricultural insurance and rules for signing agricultural insurance policy

Decree No. 58/2018/NĐ-CP of Vietnam’s Government sets out a number of regulations on types of agricultural insurance and rules for signing agricultural insurance policy as follows:

Types of agricultural insurance

According to Decree No. 58/2018/NĐ-CP of Vietnam’s Government, types of agricultural insurance include:

- Insurance against identified risks, whereby, upon occurrence of an insured event, the insurer indemnifies for the actual loss caused by the risks specified in the agricultural insurance policy.

- All-risk insurance, whereby, upon occurrence of an insured event, the insurer indemnifies for the actual loss caused by all risks, except for the insurance exclusions specified in the agricultural insurance policy.

- Business income insurance, whereby, upon occurrence of an insured event, the insurer indemnifies for agricultural production costs to compensate the loss caused by the insured risks specified in the agricultural insurance policy.

- Productivity index-based insurance, whereby, upon occurrence of an insured event, the insurer provides indemnity according to the actual increase and decrease in productivity of a geographical area (district, commune, etc.) under the agricultural insurance policy without regard to the actual loss of the subject matter insured.

- Weather index-based insurance, whereby, upon occurrence of an insured event, the insurer provides indemnity according to changes in weather index (rain, wind, droughts, floods, cold, hail, frost, earthquake, tsunami, etc.) under the agricultural insurance policy without regard to the actual loss of the subject matter insured.

- Remote sensing index -based insurance, whereby, upon occurrence of an insured event, the insurer provides indemnity according to changes in remote sensing index under the agricultural insurance policy without regard to the actual loss of the subject matter insured.

- Other types of agricultural insurance under the agricultural insurance policy.

Rules for signing agricultural insurance policy

Decree No. 58/2018/NĐ-CP clearly states: An agricultural insurance policy is signed according to the voluntary agreement rule without restricting the number of insurance participants, subject matters insured and insured risks, and coverage.

Agricultural insurance assistance policy

The agricultural insurance assistance policy shall be implemented within the budget in each period by providing assistance in agricultural insurance premiums for some agricultural producers, subject matters insured, insured risks and within a certain area in order to implement social security policy and agricultural production development program of the Government.

Decree No. 58/2018/NĐ-CP of Vietnam’s Government takes effect from June 05, 2018.

-Thao Uyen-

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