Struggling with the implementation of livestock insurance

Over a year has gone by and still no imminent implementation

The agricultural insurance policy according to Decision No. 13/QD-TTg dated June 24, 2022, by the Prime Minister has been in effect since June 24, 2022, and will be maintained until December 31, 2025. The insured crops include rice, coffee, pepper, cashew; and the insured livestock include shrimp, whiteleg shrimp, buffalo, cattle, and pigs in 28 provinces and cities nationwide.

Among these, Binh Dinh province has been selected by the government to implement livestock insurance for three types of animals: buffalo, cattle, and pigs. These livestock subjects have high economic value and are being developed in Binh Dinh with a focus on increasing quality while ensuring disease safety to limit risks and enhance economic efficiency for livestock farmers.

Currently, there are nearly 16,300 buffaloes in the Binh Dinh area, a decrease of over 1,160 compared to the same period in 2022; the cattle population reaches over 306,300, an increase of nearly 9,800 compared to the same period; the pig population (including piglets with their mothers) is about 1.1 million, with the weaned pigs and sows reaching over 667,800, an increase of more than 1,500 compared to the same period in 2022. According to functional departments' assessment, livestock farming is a high-risk profession due to its susceptibility to diseases. Therefore, the government's livestock insurance policy serves as a supportive solution to partially compensate livestock farmers in case they encounter risks.

According to regulations, households categorized as poor or near-poor are eligible for a 90% livestock insurance premium subsidy annually, while other organizations and individuals receive a 20% subsidy. When insured livestock suffer losses due to diseases officially announced or confirmed by competent state agencies (such as foot-and-mouth disease, blue-ear pig disease, swine fever, etc.), the livestock insurance company will provide compensation for the damages.

In order to enable livestock farmers in the province to access livestock insurance policies and ensure legitimate benefits for the people, on August 12, 2022, the People's Committee of Binh Dinh Province issued a directive to the Department of Agriculture and Rural Development to collaborate with Bao Minh Binh Dinh Insurance Company – the entity selected by the People's Committee of Binh Dinh Province to implement livestock insurance, along with local authorities, to carry out the Prime Minister's Decision No. 13/2022. However, up to now, the livestock insurance policy has not been implemented in the area.

Difficulty in finding customers for insurance

According to Mr. Huynh Ngoc Diep, Head of the Livestock and Veterinary Department of Binh Dinh Province, after the Department of Agriculture and Rural Development of Binh Dinh Province coordinated with the Department of Finance to advise the People's Committee of Binh Dinh Province to issue a directive for the implementation of livestock insurance policies, by September 2022, the Department of Agriculture and Rural Development of Binh Dinh Province had issued a request to Bao Minh Binh Dinh Insurance Company and local authorities to cooperate in the implementation.

At the beginning of 2023, the Department of Agriculture and Rural Development contacted Bao Minh Binh Dinh Insurance Company to schedule a meeting to discuss the implementation of livestock insurance policies. However, Bao Minh Binh Dinh Insurance Company postponed the appointment, citing the reason for awaiting guidance documents from the Ministry of Finance and the higher-level insurance authority.

Bao Minh Binh Dinh Insurance Company stated that before selling livestock insurance, the rules and premium rates for livestock insurance must be approved by the Ministry of Finance. After that, Bao Minh Corporation will provide guidance, and only then can Bao Minh Binh Dinh Insurance Company begin local implementation. At that point, Bao Minh Binh Dinh Insurance Company will establish contact and connections with local authorities to organize awareness campaigns, disseminate information, and search for customers to sign livestock insurance contracts.

According to livestock farmers, livestock diseases that are covered by insurance policies, such as foot-and-mouth disease, blue-ear disease, and Newcastle disease, have been controlled in Binh Dinh Province over the years. The provincial People's Committee has allocated a budget of tens of billions of VND each year to purchase vaccines for disease prevention in livestock and poultry. Therefore, now, Bao Minh Binh Dinh Insurance Company's search for customers to insure against these diseases might not be easy. If the regulations include insurance coverage for African Swine Fever, there will likely be many customers interested in participating, as this disease poses a significant threat to pig herds in many regions.

"When localities and Bao Minh Binh Dinh Insurance Company send a list of organizations and individuals interested in participating in livestock insurance to the Department of Agriculture and Rural Development of Binh Dinh, it is only at that point that DARD and the Department of Finance can provide a basis for advising the Binh Dinh Provincial People's Committee to review, approve the list, and allocate funds to support livestock insurance. However, up to now, no locality has submitted a list of organizations or individuals registering to participate in livestock insurance," Mr. Huynh Ngoc Diep, Head of the Livestock and Veterinary Department in Binh Dinh, stated.