Thailand considers making crop insurance mandatory

March 11 2016 by InsuranceAsia News Staff

The Thai government aims to protect the country’s farmers from the impact of natural disasters by making crop insurance mandatory.

A steering committee on the economy has proposed a law to make crop insurance permanent to ensure protection of farmers and secure their income in the event of natural disasters.

Luck Wajananawat, president of Bank of Agriculture and Agricultural Cooperatives (BAAC), said making crop insurance permanent was agreed by a working panel on crop insurance reform.

Currently, crop insurance in the country is voluntary and in the early stages, prompting the panel to study agricultural insurance in other countries, focusing on rice insurance corporations and agricultural mutual insurance funds.

This year, participants in Thailand’s rice insurance schemes, which offer protection from floods, drought, windstorms, frost, bushfires, pests and diseases, are expected to reach 200,000 from last year’s 92,000.

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