Government mulls compulsory insurance on rice crops. 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://www.blackseagrain.net