Decision No. 315/QD-TTg on the pilot provision of agricultural insurance during 2011-2013

Issuenos 06·08/March 2011 (Gong Beonos 133-1341March 18, 2011) OFFICIAL GAZETTE 15 ~----- .. -. . THE PRIME MINISTER Decision No. 315/QD-TTg of March 1, 2011, on the pilot provision of agricultural insurance during 2011­ 2013 THE PRIME MINISTER Pursuant ro the December 25,2001 Law on Organiriuion ofthe Government; Pursuant to the December 9, 2000 Law 011 Insurance Business; Pursuant to the Government's Resolution No. 2412008/NQ-CP of October 28, 2008, promu[goting the Government's action program for the implementation of Resolution of the 7''' plenum of the X'" Party Centra! Ccnnmittce Oil agriculture, farmers and rural areas; A I the PfO/JU,W! o]' [/11: Minister uIFinance, DECIDES: Article 1.To provide agricultural insurance on a pilot basis during 2()I 1-2011 with tilt" following contents: I. Objectives To provide agricultural insurance on a pilot basis to help agricultural producers take the initiative in remedying and recovering from financial losses caused by natural disasters or epidemics, contnbuLIng to assuring social welfare in rural areas and promoting agricultural prodnr-t ion 2. State support levels and beneficiaries a/ To support 100% of insurance premiums for poor farmer households and farmers that participate in agricultural insurance; bl To support 80% of insurance premiums for farmer households and farmers living just above the poverty line that partic i pate III agricultural insurance; cl To support 60'i!; of illsuranc~remiums for other farmer households and t~ers that participate in agricultural insurantC dl To support 20°!i) of insurance.premiums for agricultural production orzauizatiens that ~. , participate in agricultural insurance. . 3. Funds and mechanisms for: support provision ell The central budget shall pr~e 100% support for provinces which receivQdditional.-allocations from the central budget.~ bl The central budget shall pr1rtfide 50% ..-' support for provinces which contribl1'!'l!'lcss than 50'fr) of their revenues into the cent.J,;i1 budget while the remaining 50% shall be allssated from local budgets; el For other localities, suppoltbshall be provided from local budgets, 4. Support conditions: To be eligible for support, organiwions and individuals engaged in agricultural production must satisfy the following condinons: a/ Having insured objects specified in Clause 5, Article 1 or thi~ Decision; bl Having insured benefits; cl Participating in agricultural insurance and paying insurance premiums as required; e VIETNAM LAW &LEGAL FORUM 16 :)r:F!CIAL :.:iAlfTTE Issue nos06-08/March 2011 (Gong Baanos 133-1341March 18, 2011) JI Carrying out production. cultivation. husbandry. aquaculture and epidemic prevention activities according to regulations of the Ministry ofAgriculture and Rural Development. s. Objects insured and areas covered by the pilot insurance a1Pa.5!.Qy in Narn Dinh, Thai Binh. Nghe An, Ha Tinh',~inh Thuan, An Giang and Dong Thap; bl Bulfalos. cows, pigs and poultry in Bac Ninh, Nghc An, Dong Nai, Vinh Phuc, Hai Phong. thanll Hoa, Birth Dinh and 13inll Duong and Hau.oi: cI "l'rtt" lind "basa" catfish, b luc k tiger shrimp~ white-legged shrimp in Ben Tre, Soc Trang, Tra Vinh, Bac Lieu and Ca Mau. 6. lr~ch province or city, it is possible to provi~ilot agricultural insurance in all disuicts er a number of typical districts or commusss which shall be selected according to.,,,. the foJl~lI1g pnncrples: al ~\ccting large-scale agricultural prodUCrjQ;l areas which represent the whole provinceor city; b/Ensuring the balance umong vurious ureus within th~ province or city in order to facilitate the finn' review and evaluation of the impler~ationof the pilot insurance; cl A~ering to the principle that the majorities will compensate for the minorities; d/ Complying with the State's agricultural and rural development policies. 7. Insured risks and indemnity al Natural di s ast crs such as storm, inundation, drought, deep cold, damaging cold, frost and other natural disaster-related risks; b! Epidemics such i.l~ infl uc nz a, blue-cur lind foot-and-mouth diseases, fish diseases, brown hopper, yellow stunt and rice ragged stunt and other diseases; cl Indemnity bases: Insurance indemnity shall he paid according to current regulations or based on weather, disease or output data which are related to damages. 8, Conditions tor insurance entcrpnses to provide agricultural insurance on a pilot basis To be eligihle for providing agriL:ullUI al insurance on a pilot basis, insurancc enterpri scs rnusr s:ltisfy rhe following conditions: al Being engaged in non-life insurance: b/ Satidying payll1enl requirements spcciri,-,d in the Law on Insurance Business; cl Having a system of companies. branches and transaction offices in localities in which agricultural insurance program is provided on a pilot basis; dl Having an agricultural insurance starr. Article 2. Organization of implementation 1. The Ministry or Finance s.nal l: a/ Decide on insurance enterprises to provide ar;riclllllll":J1 insurance undcr this Decision; b/ Approve insurance rules. premium floors, commission and indemnity levels: cl Guide financial mechanisms and suppon pol ic ies appl icab le to iusura nee en te rprisc­ pruviding agricultural insurance and provide supports (if any) according to its competence: e VIETNAM LAW & LEGAL F Issue nos OB·OB/March 2011 (CongBiJO nos 133·1341March 18 2011) ':JFFICIAL GAZETTE ,,----"'-,-~,... -,' 17 dl Provide for dossiers, procedures and processes of agricultural insurance so as to ensure that support will be granted to eligible beneficiaries within the prescribed scope in the selected localities; el Allocate central budget funds for the provtsron of supports and guide provincial-level People's Committees in implementing the policies on t he provision of SUPPOl'ts for agricultural insurance; fl Inspect and supervise the pilot provision of agricultural insurance under this Decision; gl Annually report to the Prime Minister 011 the pilot provision of agricultural insurance; review and evaluate of the pilot provision of agricu Itural insurance for reporting to the Prime Minister at the beginning of the fourth quarter of '2() n 2, The Ministry of Agriculture and Rural Development shall' al Specify types of natural disasters and epidemics covered by agricultural insurance under Clause 7, Article I of this Decision; bl Coordinate with the Ministry of Finance in specifying dossiers, procedures and processes for provision of supports so as to ensure that support will he granted to eligible beneficiaries within the prescribed scope in the selected localities and in approving insurance rules. premiums and indemnity levels; cl Promulgate criteria of the scope of rice cultivation, livestock and poultry breeding and aquaculture to be insured; dl Promulgate standards on rice cultivation, livestock and poultry breeding and aquaculture to be insured; el Quarterly report on the results of agricultural insurance according to its competence and make proposals to the Ministry of Finance. 3. Provincial-level People's Committees shall: al Establish local steering corruaatees for agricultural insurance which wil) be~aded by a deputy chairperson of the pro~t~ial-Ievel People's Committee; bl Direct and organize the pilot p~visjon of agricultural insurance; allocate funcNP,H'mm the central and local budgets) for the prevision of support; inspect and supervise the pilot provision of agricultural insurance in their localities; -cl Coordinate with the Ministry of Fmunce in specifying dossiers, procedures a~rocesses for prov i si on of supports so as to ~ure that support will be granted to eligible beneficiaries within the prescribed scope in th!3~ selected localities and in approving insuI~n,ce rules, premiums and indemnity levels; d/ Quarterly eval uate and report ..he results of agricultural insurance and make P""'Posals to the Ministry of Finance and the Ministry of Agricultural and Rural Development, 4, Enterprises providing agricultural insurance shall: al Provide agricultural insurance on a pilot basis under this Decision and the guidance of the Ministry of Finance and the Ministry of Agriculture and Rural Development; bl Coordinate with People's Committees at @ VIETNAM LAW & LEGAL F 18 'F! 'C!iJ., .",I~lf:TTE Issue nos 06·0BIMarch 2011 (Cong BaD nos 133-134/March 18, 2011) all levels in relevant localities and the Ministry of Agriculture and Rural Development in expanding distribution networks and transaction systems so as to well serve the insured accord ing lu rl'gul,lliull~, c/ Quarterly report the results of agricultmal insurance and make proposals to the Ministry of Finance. the Ministry of Agriculture and Rnra l lJev,~I(JpI1lCIlI and provincial-level People's Committees of localities in '0.. hich agricultural insurance is provided on a pilot basis. 5. Tl\6 Vietnam Nat io na l Re-Insurance Corporation shall undertake agricultural re­ insurance under the guidance of the Ministry of finance. Artide .~. lm plcrnentution prov isioris 1. This Decision takes effect on the date of its sign.iW! and applies from July I, 20 II, through the end of 20 13. 2. ThcMinistrv of Finance, the Ministry of Agric uuurc and Rural Development and concerned ministries and branches shall guide the implementation of this Decision. 3. Ministers, heads DC ministerial-level agencies, heads of g uve rn rnc ru-a nuc hcd agencies and chairpersons of provincial-level People's Committees 01 localities in which agricultural insurance is provided on a pilot basis shall i mplement t his Decision. Prime Millister N(ilJYl::N1AN lJlJNU @ VIETNAM LAW &LEGAL F•';Jil,':