webfact Posted May 22, 2016 Share Posted May 22, 2016 Government mulls compulsory insurance on rice cropsBANGKOK: -- The government is considering a plan which will make it compulsory for rice farmers to insure their rice crops with insurance companies which, in the long run, will ease the government’s burden in helping farmers.An informed source in the Non-Life Insurance Association said that the compulsory insurance scheme would first to be applied with farmers who are debtors of the Bank of Agriculture and Agricultural Cooperatives which would cover about 25 million rai of rice farmland. The insurance premium is estimated at 130 baht per rai.Currently, seven insurance companies are providing farm insurance coverage for seven risks namely flood or heavy rains, drought, storm or typhoon, cold weather or frost, hailstorm and fire. Insurance premium ranges from 115 baht to 450 baht/rai.Farmers will be compensated 1,111 baht/rai if the crops are ravaged by either of the seven risks; 555 baht/rai for damages caused by pests.However, the source pointed out that insurance companies would charge an average premium of 120 baht/rai if at least 25 million rai of farmland are insured which are deemed economically feasible.Meanwhile, Mr Suthipol Thaveechaikarn, secretary-general of Insurance Business supervision and promotion committee, said that of the 120 baht/rai insurance premium to be charged on farmers, the farmers will actually pay 20 baht/rai while the rest to be charged to BAAC on the condition that only 15 rai per household are insured.Source: http://englishnews.thaipbs.or.th/content/164175 -- Thai PBS 2016-05-23 Link to comment Share on other sites More sharing options...
Bob12345 Posted May 23, 2016 Share Posted May 23, 2016 Wonder how much lobbying the insurance companies have done to get this on the agenda. Compulsory insurance = goldmine! Link to comment Share on other sites More sharing options...
MobileContent Posted May 23, 2016 Share Posted May 23, 2016 Farmers will this year suffer a drought and I told my FIL not to plant anything this year and just buy the rice from a broker. Link to comment Share on other sites More sharing options...
Utley Posted May 23, 2016 Share Posted May 23, 2016 So the rice farmers get screwed, the insurance companies get rich and the government walks away from the whole ugly affair. Just another day in the land of smiles! Link to comment Share on other sites More sharing options...
maoro2013 Posted May 23, 2016 Share Posted May 23, 2016 What about the farmers who don't need or want insurance Big brother is here Link to comment Share on other sites More sharing options...
Eric Loh Posted May 23, 2016 Share Posted May 23, 2016 The government will do well to consider this very carefully as it come with at a large cost for BAAC. There are a wealth of documented cases of claims percentage (percentage of claims to premiums) at astronomical high and put bank at high risks. It may turned out to be no difference in massive loss to the government with the pledged price scheme of previous government. Link to comment Share on other sites More sharing options...
SABloke Posted May 23, 2016 Share Posted May 23, 2016 So you pay 115 insurance and receive 1111 I'm glad other insurance doesn't have such a crappy ratio...fukc...I'd be paying 90 000 Baht car insurance for my lowly little Mazda Link to comment Share on other sites More sharing options...
SABloke Posted May 23, 2016 Share Posted May 23, 2016 Shouldn't the value of the lost revenue be covered i.e. value of the crop? Surely more than 1000 Baht per rai isn't it??? Link to comment Share on other sites More sharing options...
kannot Posted May 23, 2016 Share Posted May 23, 2016 ?????????????? sheesh, words fail me, always wanting a bailout, why not grow a multitude of crops instead of one, anything but take responsibility for your own futures Link to comment Share on other sites More sharing options...
joebrown Posted May 23, 2016 Share Posted May 23, 2016 ars ago The government will do well to consider this very carefully as it come with at a large cost for BAAC. There are a wealth of documented cases of claims percentage (percentage of claims to premiums) at astronomical high and put bank at high risks. It may turned out to be no difference in massive loss to the government with the pledged price scheme of previous government. When I lived 'up north' a few years ago one of the more affluent and 'well-heeled' locals was employed by the government as an area loss assessor dealing with the compensation claims by rice farmers who suffered losses due mainly to flooding. From what I was told most claims approved by the assessor were inflated so as to provide sufficient surplus for himself and the farmer to share. Maybe the government has since sent out it's own inspectors to check on the validity of previous claims, and found 2 + 2 = 5, and wants the burden of losses to be removed from the budget deficit. Link to comment Share on other sites More sharing options...
Bob12345 Posted May 24, 2016 Share Posted May 24, 2016 So you pay 115 insurance and receive 1111 I'm glad other insurance doesn't have such a crappy ratio...fukc...I'd be paying 90 000 Baht car insurance for my lowly little Mazda You should understand that the ratio depends on the chance they have to pay out and the amount they will pay out. Link to comment Share on other sites More sharing options...
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