Lawmakers have passed the long awaited Agricultural Insurance Law that expands the scope of protection from natural disasters to include also pests, diseases, poisons, and environmental factors.
Under the new law, which lawmakers passed last week, the government will subsidise insurance premiums for farmers by up to 75% in the first five years and up to 60% from the sixth year onwards, reported Radio Taiwan International.
At the same time, the government is setting aside an annual budget of NT$10bn ($334m) to establish an agricultural insurance fund, manage the risk transfer mechanism, and strengthen the sustainable agricultural insurance operations.
The new law, which was passed after decades of deliberations on farm insurance, provides a definition for “natural disasters”, citing a list that includes typhoons, winds, tornadoes, heavy rains, hail, cold currents, drought, seawater backflows, landslides, and earthquakes, etc. The insurance can be bought to cover crops, forestry, fishery and livestock.
The government will build a dual-track insurance operating mechanism, involving the insurance industry, as well as farmers’ and fishermen’s associations authorised by the competent authority to help in distributing the insurance.